An increase in demand occurs when
A) we measure price in money price rather than real price.
B) we move up the demand curve.
C) the demand curve shifts to the right.
D) the demand curve shifts to the left.

Question

Quizplus · Accepted Answer

An increase in demand occurs when the demand curve shifts to the right, indicating that customers are willing and able to purchase more of the product at the same price. This can be caused by various factors such as changes in consumer preferences, demographics, income levels, or marketing efforts, among others. Moving up the demand curve (Option B) refers to a change in quantity demanded but not a change in demand itself. Measuring price in money vs. real price (Option A) is not related to demand but rather to inflation and purchasing power. The leftward shift of the demand curve (Option D) indicates a decrease in demand, which is the opposite of what the question is asking.

An Increase in Demand Occurs When