Define or explain the following concepts:
2. Increase in demand
ANSWER:
When the demand for a good increases with the change in factors other than the price of the good, it is called an increase in demand. Some of the factors that lead to an increase in demand is a rise in income, developing a taste and preferences for the commodity, rise in the price of related goods, etc. Graphically, an increase in demand is represented by a parallel rightward shift of the demand curve.
