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Shift along the Demand Curve: Increase and Decrease Video Lecture - Economics Class 11 - Commerce

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FAQs on Shift along the Demand Curve: Increase and Decrease Video Lecture - Economics Class 11 - Commerce

1. How does an increase in income affect the demand curve?
Ans. An increase in income typically leads to a shift along the demand curve. For normal goods, as income rises, the demand for these goods also increases, causing the demand curve to shift to the right. On the other hand, for inferior goods, as income increases, the demand for these goods decreases, causing the demand curve to shift to the left.
2. What factors can cause a decrease in demand for a product?
Ans. Several factors can cause a decrease in demand for a product. Some common factors include a decrease in income, a change in consumer preferences, the introduction of substitute products, an increase in the price of complementary goods, and a decrease in the population or target market for the product.
3. How does a change in price affect the demand curve?
Ans. A change in price does not shift the demand curve but leads to a movement along the existing demand curve. When the price of a product increases, the quantity demanded decreases, resulting in a movement up along the demand curve. Conversely, when the price decreases, the quantity demanded increases, causing a movement down along the demand curve.
4. What is the difference between a movement along the demand curve and a shift in the demand curve?
Ans. A movement along the demand curve occurs when there is a change in the price of the product, leading to a change in the quantity demanded. This movement is represented by a new point on the same demand curve. On the other hand, a shift in the demand curve occurs when there is a change in a factor other than price, such as income or consumer preferences, causing the entire demand curve to shift either to the left or right.
5. How does advertising impact the demand curve?
Ans. Advertising can have a significant impact on the demand curve. Effective advertising campaigns can increase consumer awareness and influence consumer preferences, leading to an increase in demand for the advertised product. As a result, the demand curve can shift to the right. Conversely, a decrease in advertising or an ineffective advertising campaign may decrease demand, causing the demand curve to shift to the left.
198 videos|314 docs|71 tests
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