Answer to Question #249195 in Microeconomics for Bren

Question

What causes a shift in the demand curve

Answer 1

Solution:

A shift in demand is caused by several factors which include the following:

·        Change in consumer income.

·        Changes in consumers’ tastes and preferences.

·        Change price of related goods such as substitute and complementary goods.

·        Change in consumer population.

·        Expectations about future conditions and prices.

·        Change in price of the product or service.