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Question
With the help of a graph explain the increase in demand concept.
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Solution
Increase in demand refers to a rise in the demand of a commodity at the same price. It is caused by any factor other than the own price of the commodity. It denotes a situation where demand for a commodity increases in the market. It leads to rightward shift of the demand curve. The concept of an increase in demand is illustrated in the below digram.
The above figure shows that when the price of good-X is ₹ 10 per unit, 5 units are demanded. At the same price of ₹ 10, consumers demand 10 units. It may be due to increase in their income or change in tastes in favour of the commodity, or other factors.
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