What are the Shifts in the Demand Curve?
This concept was derived under the presumption that the customer’s earning, the costs of other commodities and the proclivities of the customer are given. Given the costs of other commodities and the proclivities of a customer, if the earning rises, the demand for the commodity at each cost price changes, hence, there is a demand curve shift. For normal commodities, the demand curve moves toward the right and for inferior goods, the demand curve moves toward the left. Given the customer’s earning and his or her proclivities, if the cost of a corresponding commodity differs, the demand for a commodity at each degree of its cost differs and there is a demand curve shift. If there is a rise in the price of an alternative commodity, the demand curve moves toward the right. On the other hand, if there is a rise in the cost of a supplementary commodity, the demand curve moves toward the left. The demand curve can also move due to a difference in the preferences and proclivities of the customer. If the customer’s proclivities differ in oblige of a commodity, the demand curve for such a commodity shifts toward the right. On the other hand, the demand curve moves toward the left due to an adverse difference in the preferences of the consumer. The demand curve for cold drinks, for instance, is likely to shift toward the right in the summer because of preference for cold drinks increases in summer. Disclosure of the fact that cold-drinks might be injurious to health can adversely affect proclivities for cold-drinks. This is likely to result in a leftward demand curve shift for cold-drinks.
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