SHIFTS OF THE DEMAND CURVE

A shift in demand for a good or service will have an impact on both the equilibrium price and quantity.
A SHIFT TO THE RIGHT OF THE DEMAND CURVE
If there is an increase in demand then the demand curve will shift to the right.
Any of the following will cause the demand curve to shift to the right

  •  increases in wages or salaries   

  • decrease in income tax.

  • a decrease in price of a complement.

  • an increase in price of a substitute.

  • a good advertising campaign.

  • the good becomes more fashionable.
A shift to the right of the demand curve will mean that ...
  • equilibrium price will increase.
  • equilibrium quantity will increase.

 
A SHIFT TO THE LEFT OF THE DEMAND CURVE
If there is a decrease in demand then the demand curve will shift to the left.
Any of the following will cause a decrease in demand.

  •  increases in wages or salaries   

  • decrease in income tax.

  • a decrease in price of a complement.

  • an increase in price of a substitute.

  • a good advertising campaign.

  • the good becomes more fashionable.

 
A shift to the left of the demand curve will mean that ...
  • equilibrium price will decrease.
  • equilibrium quantity will decrease.