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A-Level Economics · Shift in demand diagram question

George Chantry, professional A-Level Economics tutor

What could cause this rightward SHIFT of the demand curve?

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The diagram

Shift in demand diagram for A-Level Economics on a labelled grid, every point lettered

The answer

A rise in consumer incomes. A non-price factor changed: more income → more demanded at EVERY price. The classic trap: a change in the good's OWN price moves you ALONG the curve. Only non-price factors (incomes, tastes, other goods' prices) SHIFT it.

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This is one of 3 questions on the shift in demand diagram — every corner lettered, every wrong answer diagnosed.

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