Posted by Anjali Kaur on May 11, 2020
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The rightward and leftward shift of the demand curve

The rightward and leftward shift of the demand curve is a common question asked by me when I teach students the concepts of ‘demand and supply.  One basic rule you all need to memorize, ‘Right shift means to increase or rise’ and ‘Left shift means less or decrease’.

Demand shows the inverse relationship between price and quantity demanded ceteris paribus (keeping other things that affect the demand constant). Now, when we talk about its construction, we get a negatively sloped curve, namely the demand curve.

Wherein quantity demanded is shown on the x-axis, and the price is shown on the y-axis. When the other factors start changing (Wondering what the first factor was? Answer. Price of the commodity). For example, if the income of the consumer increases it causes a rightward shift in the demand curve, in case the consumer is demanding normal goods, if the consumer develops favorable taste towards a particular brand, then also it will lead to the rightward shift. It is a wider concept please refer to the below slideshow for better understanding.

Theory of Consumer Behaviour (part – 2) Class 12 from Anjali Kaur Suri

Supply shows the direct relationship between price and quantity supplied keeping other factors constant (ceteris paribus). When we construct a supply curve, taking quantity supplied on the x-axis and price on the y-axis, we get an upward sloping curve.

Now, Supply is a producer concept. So, if the cost of inputs increases the supply curve will shift to the left, or if the government starts giving subsidies for the production of some goods then supply will shift to the right.

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You can read more related posts:

  1. Introduction to Economics
  2. What do you mean by an economy?
  3. What are the Central problems of the economy?
  4. Production Possibility Curve
  5. What causes PPC to shift?
  6. What does the opportunity cost mean?
  7. The point on and off the Production Possibility Curve

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