Question

Mention two factors that can lead to a rightward shift of the demand curve for a commodity.

Answer 1

Two factors that can lead to rightward shift of demand curve for a commodity are:-

• Increase in income of the consumer: when the income of the consumer increases price of the commodity remaining same, the demand for commodity increases. Increase in demand will lead to rightward shift of the demand curve.
• Rise in price of substitute goods : Substitute goods are goods which act as substitute for one another. Example, tea and coffee. Rise in the price of substitute goods result in increase in demand of the given commodity, price of the commodity remaining same and hence the demand curve shifts in the rightward direction. example, if price of tea rises demand for coffee also rises.