Increases in demand are caused by

Question

Quizplus · Accepted Answer

Increases in demand are caused by increases in income, as consumers have more disposable income to spend on goods and services. A decrease in price may lead to an increase in quantity demanded, but not necessarily overall demand. Increases in costs of production may lead to a decrease in supply, which can lead to an increase in price and a decrease in quantity demanded, but not necessarily an increase in demand. Similarly, a decrease in the prices of substitute goods may lead to an increase in demand for the goods, but it is not a direct cause of an increase in demand. Lastly, a decrease in the number of consumers in the market would result in a decrease in demand, not an increase.

Increases in Demand Are Caused by