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Economics explained


Demand and supply

Shifts in the demand curve

Shifts in the demand curve

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The figure above depicts a rise in demand at each price level, with the demand curve shifting to the right, from D0 to D1.

For example, at price P1, demand for the good would rise from X to Y.

This shift could be caused by any of the following factors influencing demand.

A rise in household income
A rise in the price of substitutes
A fall in the price of complements
A change in tastes towards this product
An expected rise in the price of the product

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