Question

Increase in demand is shown by the demand curve when ______.

Options

• the demand curve shifts to the right

• the demand curve shifts to the left

• upward movement along the given demand curve

• downward movement along the given demand curve

Answer 1

Increase in demand is shown by the demand curve when the demand curve shifts to the right.

Explanation:

An increase in demand occurs when more quantity is demanded at the same price, due to factors like:

• Rise in income (for normal goods)
• Change in tastes/preferences
• Decrease in the price of complementary goods, etc.
• A rightward shift of the entire demand curve shows this.