Question

Distinguish between:

Increase in demand and Decrease in demand

Distinguish between: (Any Three)

Increase in Demand and Decrease in Demand

Answer 1

Sr. No.	Increase in Demand	Decrease in Demand
1.	When more quantity is required than before at the same price, it is called an increase in demand.	When less quantity is required than before at the same price, it is called a decrease in demand.
2.	An increase in demand occurs due to favorable changes in factors other than price, like fashion, income, taxation policy, advertisements, etc.	A decrease in demand occurs due to unfavourable changes in factors other than price, like fashion, income, taxation policy, advertisements, etc.
3.	An increase in demand is indicated by a shift in the demand curve to the right.	A decrease in demand is indicated by a shift in the demand curve to the left.
4.	When there is an increase in demand, the demand curve shifts to the right from DD to D1​D1​, as shown in the figure. Increase in demand	When there is a decrease in demand, the demand curve shifts to the left from DD to D2​D2​ as shown in the figure. Decrease in Demand