Confidence in the economy. If the economy of the country is doing good, it is likely that the confidence in that currency is high, raising the demand. However, when the economy is sloppy, the lack of confidence brings down the demand level.
Level of exports and imports
Relative income changes (Higher income in other countries => go on holidays and thus rising demand for other currencies.)
Relative interest rate (High interest rate => high return => people invest more in it)
Supply
it will shift the supply curve to the right
All factors other than price will shift the demand curve. Price moves along the demand curve.
Ceteris Paribus is greek for all others being equal. This is crucial to any economic analysis not just demand and supply since one can't control all the factors. Therefore, when shifting a demand (or supply) surve, we assume that only one factor is causing it to shift and all other factors that can shift the demand curve stays constant.
Change in: production costs; production environment; price of related good; law; labour demand/price.
Supply
it will shift the supply curve to the right
All factors other than price will shift the demand curve. Price moves along the demand curve.
Ceteris Paribus is greek for all others being equal. This is crucial to any economic analysis not just demand and supply since one can't control all the factors. Therefore, when shifting a demand (or supply) surve, we assume that only one factor is causing it to shift and all other factors that can shift the demand curve stays constant.
it will shift b****
Change in: production costs; production environment; price of related good; law; labour demand/price.
A change in quantity demanded
Demand can be shaped by numerous factors. Economic circumstances can strengthen or weaken demand. Price and population are also strong demand shapers.
the factors that cause the demand curve for bonds to shift are: increase/decrease in inflation rate increase/decrease of common stock increase/decrease of stock prices useful table :
Laws of demand and supply is based on the assumption that other things (given market, fixed set of customers whose income are not changed whose taste remains same and the price of substitutes or complementary goods also remains unchanged) will remain same and if there is any change in any such factors it will cause shift in demand and supply curve and there will be new equilibrium price and equilibrium quantity.
Shift in demand curve is affected by the change in prices of substitutes, change in consumer's behaviour, tastes and income etc.
Determinants of demand which are sometime also called as demand shifters is a number of factors that when they change they will cause the demand curve to shift.