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Economics and Growth

The demand curve is likely to change upwards or rise as a result of changes in a number of factors. One, if there is a move up in the price of an alternative commodity, or decrease in price of the given commodity’s accompaniment. Two, if there is a rise in buyers’ income. Three, if the taste as well as preferencs of the consumers shifts in regard to the particular product or service under consideration. Four, when there is a decrease in the cost of borrowing. And finally, if there is an overall increase in the buyers’ trust accompanied with optimism for the particular product or service.
Consequently, the outward change in the demand curve gives rise to a shift also referred to as expansion, along the supply curve coupled with an increase in the equilibrium price as well as quantity. In such a case, the suppliers will increase he quantity of their supplies at that higher price, thus gain more from sales. On the other hand, the opposite effects will take place if there is an inward change of demand. It is important to note that, a movement of the demand curve does not influence any …

 

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