Question

Explain any two factors that affect the increase in demand.

Answer 1

• Increase in income: When people’s income rises, they are able to purchase a larger quantity of goods at the same price, which results in an increase in demand and causes a rightward shift of the demand curve.
• Favourable change in consumer preferences: If consumers develop a favourable preference for a product due to better quality, changing trends, or other factors, they tend to buy more of that product at the same price, leading to an increase in demand and a rightward shift of the demand curve.