Factors that Shift the Demand Curve (Edexcel IGCSE Economics)

If more money is spent on advertising or branding, then demand for goods/services will increase as more consumers are aware of the product

There is a direct relationship between branding/advertising and demand

D shifts right (D → D₁)

Real Income determines how many goods/services can be enjoyed by consumers

There is a direct relationship between income and demand for normal goods

Income increases 

• D shifts right (D → D₁)

If goods/services become more fashionable, then demand for them increases

There is a direct relationship between changes in taste/fashion and demand

Good becomes more fashionable

• D shifts right (D → D₁)

Changes in the price of substitute goods will influence the demand for a product/service

There is a direct relationship between the price of good A and demand for good B

For example, the price of a Sony 60" TV increases so the demand for LG 60" TV increases

Price of good A increases

• D for good B shifts right (D → D₁)

Changes in the price of complementary goods will influence the demand for a product/service

There is an inverse relationship between the price of good A and demand for good B

For example, the price of printer ink increases so the demand for ink printers decreases

Price of good A increases

• D for good B shifts left (D → D₂)

If the population size of a country changes over time, then the demand for goods/services will also change

There is a direct relationship between the changes in population size and demand

Demand will also change if there is a change to the age distribution in a country as different ages demand different goods/services e.g an ageing population will buy more hearing aids

Population increases

• D shifts right (D → D₁)