Question

Provide three examples, in either food or agriculture, of a demand curve shifting to the right. Make sure in your examples you utilize a change in three different determinants of demand and explain your reasoning. I would prefer to use gluten, soybeans and dairy

Answer 1

First of all let us understand a few things about the demand curve:

1. It is the relation between the price of a good and the quantity demanded of the good
2. Quantity demanded is inversely related to the price therefore, the curve is downward sloping
3. For any change in the quantity demanded due to a change in the price, there will not be any shift in the demand curve but only a movement along the demand curve
4. For a shift in the demand curve, there needs to be a change in other factors determining the quantity demanded of the good such as prices of complimentary or substitute goods, change in tastes and preference of the consumers, income of the consumer, expectation of future prices etc.

Now coming to the required examples:

1. Lets say the price of tea goes up, tea is a substitute to coffee so the demand for coffee goes up. this shifts the coffee demand curve to the right as there is no change in the price of coffee. Factor causing this is the change in prices of a substitute good
2. Greater number of people realizing being lactose intolerant leads to greater demand for soybean milk which can be made at home from soybeans, this leads to an increase in the demand for soybeans and shifting of the demand curve to the right. Factor causing this is the change in taste and preferences of the consumers
3. Due to an increase in the income, now people are able to more finer grains such as wheat or rice while earlier they consumed coarser grains such as maize. this leads to an increase in the demand for wheat or rice and shifting of the demand curve to the right. Factor causing this is the change in the income of the consumers