Even though the price of beef hadnt changed, the quantity demanded was lower at every price.

Kimberly Amadeo has 20 years of experience in economic analysis and business strategy.

Thomas Brock is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting.

A shift in the demand curve is when a determinant of demand other than price changes.

It occurs when demand for goods and services changes even though the price didnt.

That is a chart that details exactly how many units will be bought at each price.

Its guided by the law of demand which says people will buy fewer units as the price increases.

Thats as long as nothing else changes, an economic principle known as ceteris paribus.

That means all determinants of demand other than price must stay the same.

A shift in the demand curve is the unusual circumstance when the opposite occurs.

Price remains the same but at least one of the other five determinants change.

They can also be complementary, such as beef and Worcestershire sauce.

When the demand curve shifts, it changes the amount purchased at every price point.

For example, when incomes rise, people can buy more of everything they want.

In the short-term, the price will remain the same and the quantity sold will increase.

If people switch to electric vehicles, they will buy less gas even if the price of gas remains the same.

The curve shifts to the left if the determinant causes demand to drop.

That means less of the good or service is demanded at every price.

They will buy less of everything, even though the price is the same.

The curve shifts to the right if the determinant causes demand to increase.

This means more of the good or service are demanded at every price.

Theyll buy more of everything, even though the price hasnt changed.

Here are examples of how the five determinants of demand other than price can shift the demand curve.

Consumer trends: During the mad cow disease scare, consumers preferred chicken over beef.

Creating A Supply And Demand Curve In Excel For Mac