Study Notes
Shifts in Market Demand
- Level:
- AS, A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 26 Jan 2019
This study note looks at the causes of shifts in market demand
Key summary
Give me 5 reasons why demand may increase (i.e. the demand curve shifts to the right)
- Increasing income (for normal goods)
- Decreasing income (for inferior goods)
- Rising price of substitutes
- Falling price of complements
- Effective advertising
Give me 5 reasons why demand may decrease (i.e. the demand curve shifts to the left)
- Change in consumer tastes and preferences away from the product
- Rise in interest rates leading to a fall in demand for products bought on credit
- Expected fall in prices leading consumers to delay their purchases
- A rise in unemployment during a recession
- A rise (appreciation) in the exchange rate which makes import (substitutes) cheaper
You might also like

Monopoly - Eli Lilly cuts prices of insulin by up to 70%
1st March 2023
Significance of PED with Indirect Taxes
Topic Videos
Price Elasticity of Demand for Primary Commodities
Topic Videos

New Zealand legislates to ban cigarettes for future generations
15th December 2022

Price Elasticity of Demand - Glastonbury raises ticket prices to £340
18th October 2022

Cost of Living Crisis - Boots debuts 'Everyday' budget essentials range
7th September 2022