A Change in Demand due to a Change in Non-Price Factors

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    A Change in Demand due to a Change in Non-Price Factors

    • It is clear that changes in consumer income, the prices of other products, and tastes in fashion cause a change in demand for a product
    • When this occurs, it results in a shift of the demand curve or schedule
    • This means that in a different amount of the good or service is now demanded at the same price
    • This must not be confused with a movement along a demand curve, which is due to a change in the price of a product resulting in the change in the quantity demanded.

     

    • A change in demand can product two results:
      • An increase in demand, where the demand curve shifts to the right
        • This means that more of the product is being produced at the same price
      • A decrease in demand, where the demand curve shifts to the left

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