3.5.2 Shifts in Demand
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Changes in the population, consumer tastes, availability of items, or prices of other goods can cause shifts in the demand curve.
The figure shows an increase in demand as Demand 1 and Demand 2, with no change in price.
When a consumer experiences a change in income, a shift in the demand curve can result. For example, when our disposable income increases, we can eat steak for dinner (the demand for steak increases). Or, we no longer have to eat beans for dinner (the demand for beans decreases).
When a consumer experiences a change in income, a shift in the demand curve can result. For example, when our disposable income increases, we can eat steak for dinner (the demand for steak increases). Or, we no longer have to eat beans for dinner (the demand for beans decreases).
The sales of white bread, for example, might increase if brown bread no longer is available.
When brown bread again becomes available, the demand for white bread likely would decrease to its original amounts.
During this time, the price for a loaf of white bread does not change.
When brown bread again becomes available, the demand for white bread likely would decrease to its original amounts.
During this time, the price for a loaf of white bread does not change.