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Increase in Demand:

An increase in demand for a commodity is a situation where the consumption of a commodity increases without an increase in the commodity‘s own price.For instance, if during the 2006 World Cup the purchase of television (TV) sets increased when there was no changes in TV prices it could be described as increase in the demand for TV sets. An increase in demand causes a complete shift in the demand curve of the commodity to the right.

2071_Increase in Demand.png

The initial demand curve is given as D1  D1  in Figure  and as a result of the increase in demand D1 has shifted completely to D2 D2.  The price of the commodity remains at c5,000 but consumption has increased from 40 to 80 bags.

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