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Distinguish between increase in demand and decrease in demand?
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Distinguish between increase in demand and decrease in demand?
Yes sir . It refers to the increasing in quantity demands due to change in any factor other than own price of a commodity is known as increasing in demand .
It refers to a decrease in quantity demanded due to changes in any factor accept own price of commodity is called decrease in demand.
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Distinguish between increase in demand and decrease in demand?
Introduction:
Demand is the quantity of a good or service that consumers are willing and able to buy at different price levels. It can be influenced by various factors, including changes in consumer preferences, income levels, prices of related goods, and overall economic conditions. An increase in demand refers to a situation where consumers are willing to purchase more of a particular good or service at each price level, while a decrease in demand indicates consumers are willing to buy less.

Distinguishing between Increase in Demand and Decrease in Demand:

1. Definition:
- Increase in demand: It refers to a situation where the quantity demanded of a good or service rises at each price level, given that all other factors remain constant.
- Decrease in demand: It refers to a situation where the quantity demanded of a good or service decreases at each price level, assuming all other factors remain unchanged.

2. Factors influencing demand:
- Increase in demand: Several factors can contribute to an increase in demand, such as a rise in consumer income, a decrease in the price of substitute goods, an increase in the price of complementary goods, favorable consumer tastes and preferences, population growth, and improved economic conditions.
- Decrease in demand: A decrease in demand can be caused by factors like a decline in consumer income, an increase in the price of substitute goods, a decrease in the price of complementary goods, changing consumer preferences, a decrease in population, and worsening economic conditions.

3. Demand curve:
- Increase in demand: An increase in demand is represented by a rightward shift of the demand curve. This indicates that consumers are willing to buy more at each price level. The demand curve shifts to the right because the quantity demanded increases at all price points.
- Decrease in demand: A decrease in demand is depicted by a leftward shift of the demand curve. This implies that consumers are willing to purchase less at each price level. The demand curve shifts to the left because the quantity demanded decreases at all price points.

4. Price and quantity relationship:
- Increase in demand: When demand increases, the equilibrium price and quantity both rise. This is because consumers are willing to buy more at each price level, causing an increase in both the quantity demanded and the market price.
- Decrease in demand: Conversely, when demand decreases, the equilibrium price and quantity both decline. With consumers willing to buy less at each price level, the quantity demanded and the market price decrease.

Conclusion:
In conclusion, an increase in demand refers to a situation where consumers are willing to purchase more of a good or service at each price level, while a decrease in demand indicates a decrease in the quantity demanded at each price level. Various factors such as consumer income, prices of substitute and complementary goods, consumer preferences, and economic conditions can influence demand. Understanding the distinction between these two concepts is crucial for analyzing market dynamics and predicting the impact on prices and quantities traded.
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Distinguish between increase in demand and decrease in demand?
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