What is shift in demand curve?what does it mean?can someone please give me a detailed explanation of the same?
Answer:
It means people will buy more or less stuff at the same price.
Shift in Demand Curve is due to change in one of the determinants (such as taste, Income) -- price assume constant
Price of a product does not make a shift in demand curve, but movement along Demand Curve.
Eg: if price of digital camera gets cheaper.quantity demand increase, if price of digital camera increase, quantity demand decrease. (Movement along demand curve)
A shift in demand curve means that more people or fewer people than one would expect, want to buy something. You could be talking about a new product or a commodity like oil. In either case, you can see how demand would normally be a curve with a certain shape.
A demand curve is a relationship between price and quantity consumed. So for each alternative price, the curve can tell you how much is the desired consumption.
Something that changes this entire relationship is represented as a shift in the demand curve. For example, after the change, there is now more desired consumption for the same price.
What could cause a shift? The factors held constant in constructing the demand curve. For example, an decrease in price of batteries is going to increase the demand for remote-controlled toys (fall in price of complement).
A shift in demand curve results from changes in all other factors that were held constant in constructing the demand curve. Such other factors include the change in price of other commodities, change in supply of the commodity in question, change in tastes and preferences of consumers, change in income of consumers etc.
For instance, given The price of the commodity in question say Bic pen, an increase in the price of Reynold pen will bring about an increase in demand for Bic pen, representing the increase in demand of Bic pen due to the increase in price of the Reynold pen on a demand curve without a price change in Bic pen, the demand curve shifts outwards at the same price level.
Also if the taste of the consumer changes without a price change of th good in question, there will be a shift in The demand curve.
A change in quantity demanded is where all other factors mentioned above remains unchanged ( all things being equal) and the price of the commodity changes, in this case movement is along the original demand curve.
However, for a shift in the demand curve all other factors are made to vary with the exception of the price of th good in question. In this case, there is a bodily shift or movement in the demand curve resulting in more than one demand curve- the original and the new.
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