the store to stock up on coffee now. We show these changes in demand as shifts in the curve. Therefore, a shift

in demand happens when a change in some economic factor (other than price) causes a different quantity to

be demanded at every price. The following Work It Out feature shows how this happens.

WORK IT OUT

Shift in Demand
A shift in demand means that at any price (and at every price), the quantity demanded will be different than it

was before. Following is an example of a shift in demand due to an income increase.

Step 1. Draw the graph of a demand curve for a normal good like pizza. Pick a price (like P0). Identify the
corresponding Q0. See an example in Figure 3.6.

FIGURE 3.6 Demand Curve We can use the demand curve to identify how much consumers would buy at any

given price.

Step 2. Suppose income increases. As a result of the change, are consumers going to buy more or less pizza? The
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