Question

The diagram below shows a shift of the demand of a given commodity from d0d0 to d1d1. Outline any four factors that could have led to the shift 

Answer 1

1. Increase in taxes
2. Decrease in consumer’s level of income
3. Decrease in population
4. Changes in consumer tastes and preferences against the product
5. Future expectation of decrease in price of commodity
6. Expectation that the quantities supplied will increase in future.