Distinguish between causes of increase in demand and decrease in … - Vidyadip

Question

Distinguish between causes of increase in demand and decrease in demand.

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Answer

Differences between causes of increase and decrease in demand:

S. No.	Causes	Increase in demand (Rightward shift in demand)	Decrease in demand (Leftward shift in demand)
1.	Income of consumer	Increase in the income of the consumers in case of normal goods.	Decrease in the income of the consumers in case of normal goods.
2.	Price of substitute goods	Increase in the price of substitute goods.	Decrease in the price of substitute goods.
3.	Price of complement ary goods	Fall in the price of complementary goods.	Rise in the price of complementary goods.
4.	Taste and preferences	Changes in tastes and preferences in favour of the commodity.	Changes in tastes and preferences against the commodity.

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