Determinants of shift in demand

Determinants of shift in demand :

Shift in demand curve takes place when a determinant of demand changes due to factors other than price of the commodity. They are as follows :

1.Income of the buyers:

The demand curve shifts due to any factor other than change in price of the commodity. If the price of a commodity changes then the demand will determine how many units to be sold. But, if the price remains same and the income changes then that changes the qunatity purchased at each point of price.  People can purchase more quantity when they wanr to purchase when they have more income.

2.Trends and tastes :

The same effect takes place if consumer preferences or tastes changes.  When a good or service comes into fashion, its demand curve shifts to the right and vice versa.

3.Prices of related goods :

Two types of goods which results in shift of demand curve they are :
Substitute goods- when price of a commodity falls and demand of another commodity decreases.
Complementary goods - when price of a commodity falls and demand for another good increases.

4.Expectations :

Expectation of people about future can  impact significantly on demand. In other words,expectations of future prices or other factors that can impact the demand. For example if consumer have a reason to believe that the price of woolen clothes will fall next month, they would not but woolen clothes that month and wait for next month until price falls. Meanwhile, if they expect their income to rise next month then, they will be more likely to spend bit more on woolen clothes in this month, even though their income hasn't changed yet.