Factors Causing Shift in Demand

Rightward Shift

Leftward Shift

Change in the income of the consumer

Increase in income in case of normal goods but a decrease in income in case of inferior goods.

Decrease in income in case of normal goods but increase in income in case of inferior goods. 

 Change in price of related goods 

A rise in the price of substitute goods but fall in the price of complementary goods. 

Fall in price of substitute goods but a rise in the price of complementary goods.

Change in taste and preference 

Favorable changes in taste and preference. 

Unfavorable change in taste and preference. 

Change in advertisement 

Rise in advertisement expenditure. 

Fall in advertisement expenditure. 

Change in size of population 

Increase in size of the population. 

Decrease in size of the population.

Change in income distribution 

More equal distribution of income. 

More on equal distribution of income. 

Price expectations 

The expectation of a rise in the price for shortage or increase in future income. 

The expectation of fall in price or fall in future income. 

Availability of credit

More availability of credit provision.

No or less availability of credit provision.