Factors causing Rightward and Leftward Shift in the Demand curve
Factors Causing Shift
in Demand |
Rightward Shift |
Leftward Shift |
Change in the income of the consumer |
Increase in income in case of normal goods but a decrease in income in case of inferior goods. |
Decrease in income in
case of normal goods but increase in income in case of inferior goods. |
Change in price of related
goods |
A rise in the price of
substitute goods but fall in the price of complementary goods. |
Fall in price of substitute goods but a rise in the price of complementary goods. |
Change in taste and preference |
Favorable changes in
taste and preference. |
Unfavorable change in
taste and preference. |
Change in advertisement |
Rise in advertisement
expenditure. |
Fall in advertisement
expenditure. |
Change in size of population |
Increase in size of
the population. |
Decrease in size of the population. |
Change in income distribution |
More equal
distribution of income. |
More on equal
distribution of income. |
Price expectations |
The expectation of a rise
in the price for shortage or increase in future income. |
The expectation of fall in
price or fall in future income. |
Availability of credit |
More availability of credit provision. |
No or less availability of credit provision. |
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