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Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsTheory of consumer behaviour4 Marks
Question
State three causes each for a rightward shift and a leftward shift of demand curve.
✓

Answer

Causes for a rightward shift of demand curve:

  1. Increase in income of buyers. (normal good)
  2. Increase in price of a substitute good.
  3. Decrease in price of a complementary good.
  4. Favourable change in taste/fashion for the commodity.

Causes for a leftward shift of demand curve:

  1. Decrease in income of buyers. (normal good)
  2. Decrease in price of substitute good.
  3. Increase in price of complementary good.
  4. Unfavourable change in taste/fashion.

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