Reasons for a change in demand

Reasons for a change in demand - ....

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Reasons for a change in demand . It is important to keep straight the difference between a change  in quantity demanded, or a movement along the demand curve, and a change in demand, or  shift  in  the demand curve. There is only  one  reason for a change in the quantity demanded of good  X : a  change in the price of good  X ; however, there are several reasons for a change in demand for good  X , including:  1. Changes in the price of related goods:  The demand for good  X  may be changed  by increases or decreases in the prices of other,  related  goods. These related goods are  usually divided into two categories called  substitutes  and  complements . A  substitute  for  good  X  is any good  Y  that satisfies most of the same needs as good  X . For example, if  good  X  is butter, a substitute good  Y  might be margarine. When two goods  X  and  Y  are  substitutes, then as the price of the substitute good  Y rises , the demand for good  increases
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