Increase in Demand
Definition
An increase in demand means that consumers desire to buy more of a particular good or service at every given price level due to various factors such as income growth or changing preferences.
Analogy
Picture yourself in a school cafeteria with only one pizza left. Suddenly, more students come into the cafeteria and want to buy that last slice of pizza. This increase in demand means there is now a greater desire for the limited pizza.
Related terms
Shift in Demand Curve: A shift in the demand curve occurs when there is a change in demand at every price level, usually due to factors like consumer tastes or income levels.
Price Elasticity of Demand: Price elasticity of demand measures how much the quantity demanded changes when the price of a good changes.
Normal Goods: Normal goods are products for which demand increases as consumers' incomes rise.
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