An increase in demand is reflected as a rightward (outward) shift of the demand curve and is caused by an increase in price.

Question

Quizplus · Accepted Answer

An increase in demand is reflected as a rightward (outward) shift of the demand curve, but it is caused by factors such as changes in consumer preferences, an increase in consumer income, or a change in available substitutes. An increase in price would actually lead to a decrease in demand, resulting in a leftward (inward) shift of the demand curve.

An Increase in Demand Is Reflected as a Rightward (Outward)