explain in details the increase in demand and decrease in demand with the help of the diagram???
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Reasons for Increase and Decrease in Demand!
Now, if the other things, that is, determinants of demand other than price such as consumers’ tastes and preferences, income, price of the related goods change, the whole demand curve will change. When due to the changes in these other factors, the demand curve shifts upwards, increase in demand is said to have occurred.
Increase in demand means the consumer buys more of the good at various prices than before. For example, if the income of a consumer increases, or if the fashion for a goods increases, the consumer will buy greater quantities of the goods than before at various given prices. As a result the whole demand curve will shift upward, flow considers Figure 7.
Increase and Decerease in Demand
In the beginning, the demand curve is DD. If there is a favorable change in the factors determining the demand and the demand curve for the goods shift upward to D’D’, increase in demand has occurred. It will be clear from the Figure 7. that when the demand curve for the goods is DD, then the price OF, OM quantity of the goods is demanded, but with the demand curve D’D’, at the same price OP, a greater quantity OH is demanded.
Likewise, at other prices also, at the demand curve D’D’, more quantity is demanded than at the demand curve DD. We have explained above how the increase in demand takes place.
Now, if the other things, that is, determinants of demand other than price such as consumers’ tastes and preferences, income, price of the related goods change, the whole demand curve will change. When due to the changes in these other factors, the demand curve shifts upwards, increase in demand is said to have occurred.
Increase in demand means the consumer buys more of the good at various prices than before. For example, if the income of a consumer increases, or if the fashion for a goods increases, the consumer will buy greater quantities of the goods than before at various given prices. As a result the whole demand curve will shift upward, flow considers Figure 7.
Increase and Decerease in Demand
In the beginning, the demand curve is DD. If there is a favorable change in the factors determining the demand and the demand curve for the goods shift upward to D’D’, increase in demand has occurred. It will be clear from the Figure 7. that when the demand curve for the goods is DD, then the price OF, OM quantity of the goods is demanded, but with the demand curve D’D’, at the same price OP, a greater quantity OH is demanded.
Likewise, at other prices also, at the demand curve D’D’, more quantity is demanded than at the demand curve DD. We have explained above how the increase in demand takes place.
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