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Question
Give two reasons for the shift of the demand curve towards the left.
Solution
The demand curve may shift towards the left due to the following reasons:
- Fall in consumer's income.
- Fall in the price of a substitute for the good.
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The following table shows a change in the demand. Read the table carefully and answer the question that follows:
| Case I | Case II | ||
| Price (₹) | Quantity | Price (₹) | Quantity |
| 10 | 20 | 10 | 20 |
| 10 | 10 | 5 | 20 |
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A change in quantity demanded as a result of price change will imply a shift of the demand curve to the right.
