Increase in Demand


Here is a figure to illustrate an increase in demand. The demand curve shifts from D1 to D2. With the new demand curve, there is a greater quantity demanded at every price. That is what we mean by an increase in demand.

Figure 6a: Increase in Demand

Of course, only one of these demand curves exists at any one time. Here's an animation that gives a more dynamic idea of what economists have in mind by "a change in demand."

The Animation

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