MYTUTOR SUBJECT ANSWERS

191 views

What factors cause the shifts and movements of the demand curve?

A movement along the demand curve is caused by a change in price only. If price decreases, quantity increases and demand is said to have extended or expanded. If price increases, quantity decreases and demand is said to have contracted. The price of the good changing does not shift the curve, you just slide up and down the demand curve. A shift of the demand curve will be caused by a change in any factor other than price and a new curve is to be drawn. The easiest way to remember the factors that shift the curve is to use PIRATES:

Population

Interest Rates - if interest rates decrease, the quantity demanded increases as consumers can afford to borrow to buy more.

Real Disposable Income - if income after tax and inflation increases then consumers tend to spend more.

Advertising 

Tastes and Fashions

Expectations - if consumers expect prices to fall they might reduce current consumption.

Substitute and Complimentary Goods

Elliot G. GCSE Economics tutor, IB Economics tutor, GCSE Politics tut...

5 months ago

Answered by Elliot, a GCSE Economics tutor with MyTutor

Still stuck? Get one-to-one help from a personally interviewed subject specialist

53 SUBJECT SPECIALISTS

£18 /hr

Lily W.

Degree: History (Bachelors) - University College London University

Subjects offered: Economics, History+ 2 more

Economics
History
Extended Project Qualification
Business Studies

“About me: Hi! I am a second year History student at UCL and would love to be your tutor. I love my degree and hope I can inspire you to love History too. History helps you develop a massive range of transferable skills, meaning that a...”

MyTutor guarantee

£18 /hr

Thomas W.

Degree: Philosophy, Politics and Economics (Bachelors) - Warwick University

Subjects offered: Economics

Economics

“About me Hello, my name is Tom and I read PPE (Philosophy, Politics and Economics) at Warwick, achieving A*A*A at A level in Maths, Economics and Biology respectively. I can't recall a time where i have not been fascinated bycurrent ...”

£20 /hr

Oliver W.

Degree: Natural Sciences (Bachelors) - Cambridge University

Subjects offered: Economics, Maths+ 4 more

Economics
Maths
Extended Project Qualification
Chemistry
Biology
-Personal Statements-

“I am third year student at the University of Cambridge studying Natural Sciences. I specialise in Neurobiology. However, I have a lot of experience in othersciences and maths, at GCSE and IB level. I studied for 5 years at Sevenoaks Sc...”

About the author

£18 /hr

Elliot G.

Degree: BA Economics and Politics (Bachelors) - Exeter University

Subjects offered: Economics

Economics

“About Me: I am an Economics and Politics student at the University of Exeter. I have always found these subjects fascinating due to how applicable they are to every day life and hope that my tutorials will instill that belief in you t...”

MyTutor guarantee

You may also like...

Other GCSE Economics questions

Why does a govt focus on economic growth as a primary objective and should it always pursue this objective. Give reasons for your answer.

How should I write the definitions of the different elasticities in an exam?

What's the difference between direct and indirect taxation

What are the benefits of an increase in the National Minimum Wage?

View GCSE Economics tutors

Cookies:

We use cookies to improve our service. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok