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Table 1.4-1 Factors That Shift demand

When this But when this
happens . . . . . . demand increases. happens . . . . . . demand decreases.
Price Price

When tastes . . . demand When tastes . . . demand
change in favor for the good change against a for the good
of a good . . . increases. good . . . decreases.
D 1 D 2 D 2 D 1
Quantity Quantity
Price Price
When the price . . . demand When the price . . . demand
of a related for the of a related for the
good such as a original good good such as a original
substitute increases. substitute good
rises . . . D 1 D 2 falls . . . D 2 D 1 decreases.
Quantity Quantity
Price Price
When the price . . . demand When the price . . . demand
of a related for the of a related for the
good such as original good good such as original
a complement increases. a complement good
falls . . . D 1 D 2 rises . . . D 2 D 1 decreases.
Quantity Quantity
Price Price
. . . demand . . . demand
When income for a normal When income for a normal
rises . . . good falls . . . good
D 1 D 2 increases. D 2 D 1 decreases.
Quantity Quantity
Price Price
. . . demand . . . demand
When income for an inferior When income for an inferior
falls . . . good rises . . . good
D 1 D 2 increases. D 2 D 1 decreases.
Quantity Quantity
Price Price
. . . market . . . market
When the demand for When the demand for
number of the good number of buyers the good
buyers rises . . . falls . . .
D 1 D 2 increases. D 2 D 1 decreases.
Quantity Quantity
Price Price
When the price . . . demand When the price is . . . demand
is expected to for the good expected to fall for the good
rise in the increases in the future . . . decreases
future . . . D 1 D 2 today. D 2 D 1 today.
Quantity Quantity

32 Macro • Unit 1 Basic Economic Concepts
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