INCREASE IN DEMAND DECREASE IN DEMAND

increase in demand

decrease in demand

1. Meaning: -

Increase in demand occurs when.

(a) More quantity is demanded at the same price

(b) Same quantity (original quantity) is demanded at a higher price.

2. Reasons: -

It occurs due to changes in factors such as income, taste, preferences. Habits of the consumers and population etc. In favour of the commodity.

3. Shifts of the Demand Curve:-

The demand curve shifts upwards (towards right) forming a new demand curve d₁ d₁

Decrease in demand occurs when;

(a) less quantity is demanded at the same price (original price) and

(b) Same quantity (original quantity) is demanded at a lower price.

It occurs due to changes in factors such as income, taste, preferences, habits of the consumers and population etc. Against the commodity.

The demand curve shifts downwards (towards left) forming a new demand curve d₂ d₂

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