Economics Project
Change in demand
Change in demand
~ It is caused by a change in factors (e.g. income,
taste, etc) other than a good’s own price.
Change in factors :
Income
Taste
Weather
~ It is represented by a shift of the entire demand curve.
Increase in demand
e.g.1 Recently, there is a cartoon about Yo-Yo
showing on the TV. This attracts many children
have interest on buying it.
Price($)
D1
D
Q / period
There is a change in taste in favour of Yo-Yo. The demand for Yo-Yo
increases and the demand curve of it shifts to the right.
e.g.2 Recently, there is a tendency to get slim. Most of
the women concern their body shape and want to keep
fit. So there is a great demand for Weight Loss
Product..
Price($)
D1
D
Q / period
There is a change in taste in favour of Weight Loss Product.
The demand of it increases and the demand curve shifts to the
right.
e.g.3 MTR and bus are substitutes. Recently, MTR has expanded
to Tseung Kwan O Extension. And they offer a series of fare
discount by travelling from Tseung Kwan O to town. The fare
of MTR is cheaper than the bus to and from town. There is an
increase in demand for the service from MTR.
Price($)
D1
D
Q / period
As a result, the demand for MTR service increases and its demand curve
shifts to right.
Decrease in demand
e.g.1 When the Tamagotshi was sold, there was a
great demand for it. After a period of time, no
more people wanted to buy it and there is a drop in
demand for Tamagotshi.
Price($)
D1
D
Q / period
There is a change in taste against Tamagotshi. The demand of it
decreases and the demand curve shifts to the left.
e.g.2 The flights of China Airlines had several
serious accidents. And passengers lose confidence
on it and afraid of the same accident to happen.
There is a fall in demand for the service provided
by China Airlines.
Price($)
D
D1
Q / period
Because of the accidents, the demand for the service provided
by this airline decreases and the demand curve of it shifts to
the left.
e.g.3 Private houses and Public houses are substitutes. In
recent years, Property Market is falling. This makes
the price of the private houses also declines. The price
of public houses is more expensive than the private
houses. There is a decrease in demand for public
houses.
Price($)
D
D1
Q / period
As a result, the demand for public houses decreases and the
demand curve shifts to the left.
The
End
Timmi Pau
Julie Tse
Cizzy Yau