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Shifts in Demand

Author: Kate Eskra

Source: Image of Demand Graph created by Kate Eskra, Image of Demand Shift (Decrease) created by Kate Eskra, Image of Demand Shift (Increase) created by Kate Eskra

Video Transcript
Terms to Know
Ceteris Paribus

Holding all other variables constant.

Complements (Production and Consumption)

A good for which the demand increases as the price of an associated good decreases.

Law of Demand

The inverse correlation between price and quantity with all other variables fixed.

Movements Along Demand Curve

Demonstrated when the price of the product changes and impacts the quantity demanded.

Shift in Demand

A change in something other than price affects purchasing behavior.

Substitutes (Production and Consumption)

As the price one good increases, the demand for an alternative good meeting the same producer or consumer need, increases.