A Change in Demand due to a Change in Non-Price Factors
- It is clear that changes in consumer income, the prices of other products, and tastes in fashion cause a change in demand for a product
- When this occurs, it results in a shift of the demand curve or schedule
- This means that in a different amount of the good or service is now demanded at the same price
- This must not be confused with a movement along a demand curve, which is due to a change in the price of a product resulting in the change in the quantity demanded.
- A change in demand can product two results:
- An increase in demand, where the demand curve shifts to the right
- This means that more of the product is being produced at the same price
- A decrease in demand, where the demand curve shifts to the left
- An increase in demand, where the demand curve shifts to the right