Causes of Shifts in Demand Curve

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Introduction
The first article “Shift in Demand Curve: Increase and Decrease” talks about the shift in
the demand curve describing the increase and decrease in the demand curve. The data used to
study the behavior of the demand curve was derived from any commodity in the market. The
findings in the article reveal different reasons that can cause the shift of the demand curve in the
market. Some of these reasons include price fluctuation of the substitute goods, consumer’s
income change, tastes and preferences changes, future expectations of price changes, and
seasonal changes among others (Chand). It concludes that the shift in the demand curve can’t
shift on the same curve but it has to relocate either on the right side or left side of the original
demand curve.
The second article “Effect of Demand Curve on Normal Goods and Inferior Goods”
examines how various demand determinant factors affect the demand curve for both the normal
and inferior goods. The information to study in this case is derived from the normal goods and
inferior goods. The most vital factor for this research is the consumer’s income. The demand for
normal goods tends to increase with an increment in consumer income level whilst the inferior
goods demand tends to decrease as the consumer’s income level increases and vice versa. This,
therefore, indicates a directly proportional relationship between normal goods demand and
consumer’s income level and an inverse relationship between inferior goods demand and

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consumer’s income level. Apart from the income of the consumers, there are other factors that
affect the demand curve of these goods. These factors may include change of the prices of the
substitute and complementary goods, change of the tastes and preferences of the goods,
population size, and expectational change of prices in the future among others (Chand). It
concludes that the demand curve can have an effect in the shift of its original position. This can
either shift in the right side or on the left side of the original demand curve (Chapman, Archie
and Verbič 158).
The third article “Effect of Demand Curve on Substitute Goods and Complementary
Goods” explains how various demand determinant factors affect the demand curve for both the
substitute and complementary goods (Costinot, Arnaud and Rodríguez-Clare 3). Coffee and tea
are examples of substitute goods while coffee and sugar are complementary goods given to
illustrate the effects of the demand curve in the article. The demand for a given good has a direct
proportion relationship with the price of its substitute good in the market (Chand). On the other
hand, the demand for good has an inverse relationship with the price of its complement. In this
case, demand is not affected by the price changes of unrelated goods in the market. It also finds
that cross demand can either be negative or positive depending on the kind of change in prices of
the related goods. Price change of the substitute and complementary goods is the only factor
considered to bring the effect of the demand curve of the two different kinds of goods
(Jadidzadeh, Ali and Serletis 66). It concludes that the effect of the demand curve on both goods
can either be on the right side or left the side of the original demand curve.
Body

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From the three articles, there are similarities in the findings and conclusion in each case.
The articles show that the shift in the demand curve is caused by a number of different factors in
the market. Regardless of the type of commodities in the market, changes in prices of either a
substitute good or complementary good make the demand curve shift (Knittel, Christopher and
Pindyck 85). The articles illustrate clearly that, the demand curve changes its original position
after either decrease or increase in the demand of any commodity in the market. The diagrams
below illustrate the shifts in different occasions.
Increase in the demand curve
Fig 1.
Increase in demand for a commodity is caused by any other factor favoring demand but
not its own price of the commodity. From the three articles, an increase in demand makes the
demand curve to relocate its original position to another position. This results from a shift
towards the right direction by the demand curve as shown in Fig 1. above. The quantity