Question

Which changes can cause a leftward shift in the demand curve ? Also state the change, which causes downward movement along the demand curve ?

Answer 1

(i) Fall in price of substitue goods.
(ii) Increase in price of complementary goods.
(iii) Fall in income of the consumer in case of a normal good.
(iv) Unfavourable changes in tastes and prefernces of the consumer.
(v) Expectation of fall in price of the commodity in the future.