Rightward Shift In Demand Curve

Question

Give three reasons (or causes) of a rightward shift of demand curve.

Or

Explicate briefly any three factors which lead to 'increase in need'.

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Solution

Post-obit are the iii causes of a rightward shift of the demand curve of a commodity:

(i) Increase in the income of the consumers: When the incomes of the consumers rises, the demand for normal appurtenances generally rises at the given cost and as a result the demand curve of the commodity shifts to the right which implies an increase in need. Run across Fig. (a).

(ii) Rising in the price of substitute skilful: When the price of a adept (say coffee) rises, the demand for coffee falls and the demand for its substitute good (say tea) rises at the given price, and as a event the need bend of the good (tea) shifts to the correct which implies an increase in need. Meet Fig. (b).

(iii) Autumn in the price of complementary good: When the price of a good (say petrol) falls, not only the demand for petrol rises only also the need for its complementary proficient (say car) rises at the given price and as a upshot the need bend of the good (car) shifts to the right which implies an increase in demand. See Fig. (c).

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Rightward Shift In Demand Curve,

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