to buy new cars. They will be less likely to rent an apartment and more likely to own a home. A product whose

demand falls when income rises, and vice versa, is called an inferior good. In other words, when income

increases, the demand curve shifts to the left.

Other Factors That Shift Demand Curves

Income is not the only factor that causes a shift in demand. Other factors that change demand include tastes

and preferences, the composition or size of the population, the prices of related goods, and even expectations.

A change in any one of the underlying factors that determine what quantity people are willing to buy at a given

price will cause a shift in demand. Graphically, the new demand curve lies either to the right (an increase) or to

the left (a decrease) of the original demand curve. Let’s look at these factors.

Changing Tastes or Preferences

From 1980 to 2021, the per-person consumption of chicken by Americans rose from 47 pounds per year to 97
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