gcse economics - demand and supply - how changes in demand affect price
INCREASE IN DEMAND (for reasons other than price)
An increase in demand (possibly due to increased popularity) has forced the price upwards. Suppliers will sell more goods to take advantage of this
What Happens |
Demand Curve |
Price |
Good advertising campaign |
Shift right |
Up |
Increase in peoples incomes |
Shift right |
Up |
Increase in the price of substitutes |
Shift right |
Up |
Increase in fashion |
Shift right |
Up |
Decrease in people’s incomes |
Shift left |
Down |
Decrease in the price of substitutes |
Shift left |
Down |
Increase in the number of competitors |
Shift left |
Down |
Health scare |
Shift left |
Down |
ACTION
A Try to draw the situation, which happens when demand shifts to the left. Use the table to give 3 reasons why this may happen
SMART
THINKING
B When might a fall in incomes lead to an increase in the demand for a product and vice versa?
These GCSE Economics revision notes have been kindly provided by Peter Davies of Mill Hill School, Ripley Keep Up-todate with your GCSE Economics - Subscribe Free to Economics in the News by Email
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