Give reasons or explain the following statements. 2. Increase in demand indicates a rightward shift in the demand curve.

Give reasons or explain the following statements.
2. Increase in demand indicates a rightward shift in the demand curve.

ANSWER:


When the demand for a good increases due to a change in the factors other than the price of the good, it is called increase in demand. Graphically, it is shown by a parallel rightward shift of the demand curve.
Parallel rightward shift shows that even at constant prices the quantity demanded of the good rises.