When the price changes, there is a shift in the demand curve (Pettinger, 2020).

When the price of a

product rises, consumers tend to buy less of it; however, when the price of a product falls, consumers
tend to buy more of it. This price change influences the movement of the demand curve. My example is
for a well-known brand of cooking oil in my area. If the price rises, the demand for cooking oil falls
because customers will begin looking for more affordable cooking oil brands or will stop purchasing this
brand altogether, reducing demand. However, if the price of this cooking oil brand falls, customers will
buy more of it because it is more affordable, and demand will rise. As a result, a price change usually
causes a shift in the demand curve (OpenStax College, 2016).

A shift in the demand curve occurs when the price of a product remains constant but the demand for
the product changes, either up or down (Pettinger, 2020). Consumers will want more of a popular
product if the price remains constant (and other factors remain constant). The shift occurs as a result of
consumers wanting more of the product, possibly because they can afford it and it is popular. The
opposite occurs if the product becomes unpopular and consumers reduce their demand for it, even if
the price remains constant. As a result, a shift in demand occurs when other factors affecting demand
occur while prices remain constant (OpenStax College, 2016).

My grandparents' house is located in a location where there is a shift in demand. Because main grid
power has not been brought to the area, solar energy is the most convenient source of electrical power
for households in this area. Ten years ago, very few households had solar panels installed to provide
electrical power. It was a little pricey to install at the time, and many people had not yet embraced the
new technology. Despite the installation costs, many households in the area have purchased and
installed solar panels on their roofs for their electrical power needs in the last three years. The number
of installations is also growing as locals recognize the benefits of using solar energy as a source of
electrical power for lighting, heating, and the operation of electrical household appliances. The demand
for solar panels for household electrical power in the area has shifted in a positive direction.

References:

OpenStax College. (2016). Principles of Economics. OpenStax CNX. Retrieved from

http://cnx.org/contents/69619d2b-68f0-44b0-b074-a9b2bf90b2c6@12.4 Pettinger, T. (2020, August
06). Shift in Demand and Movement along Demand Curve. Retrieved from
https://www.economicshelp.org/blog/581/economics/changes-in-demand/