Define increase in demand.
Answers
Answered by
1
hlo mate ...
An increase in demand (assuming no change in supply) leads to a rightward shift in demand curve from DD to D1D1 (Fig. 11.6).
When demand increases to D1D1, it creates an excess demand at the old equilibrium price of OP. This leads to competition among buyers, which raises the price. Increase in price leads to rise in supply and fall in demand. These changes continue till the new equilibrium is established at point E1. As there is an increase in demand only, equilibrium price rises from OP to OP1 and equilibrium quantity rises from OQ to OQ1.
An increase in demand (assuming no change in supply) leads to a rightward shift in demand curve from DD to D1D1 (Fig. 11.6).
When demand increases to D1D1, it creates an excess demand at the old equilibrium price of OP. This leads to competition among buyers, which raises the price. Increase in price leads to rise in supply and fall in demand. These changes continue till the new equilibrium is established at point E1. As there is an increase in demand only, equilibrium price rises from OP to OP1 and equilibrium quantity rises from OQ to OQ1.
Answered by
0
Answer:
When the demand increases or rises due to change in the factors other than price is known is increase in demand.
Explanation:
Increase in demand is also known as shift in demand curve or rightward shift in demand curve. Increase in demand occurs due to change in the factors other than price of the commodity. Factors other than price are: price of related goods, income, taste and preferences, miscellaneous. If any of the factor other than price will rise it will result in increase in demand.
Similar questions