change our tastes and preferences for this service, and likely shift the demand curve right/up.
Remember that tastes and preferences for a good or service are held constant when we construct the demand curve, the only things that we are allowing to change are the price and the quantity (for more info look at the discussion on endogenous vs exogenous variables). Because of this, when some event occurs, like increased business opportunities in Romania, we will see a change in preferences to conduct business with Romanian translation companies. In our example, it is a positive change in preferences (more business opportunities) so we will see the demand curve shift right/up or increase, which is shown in the graph below:
There are two big ideas to take away from this lesson:
Remember: A positive change in tastes or preferences increases demand (shifts it right/up). And, if supply stays that same, then both price and quantity go up.