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Increase in Demand

Definition

An increase in demand refers to a situation where consumers are willing and able to buy more of a product at every possible price, leading to a rightward shift of the demand curve.

Analogy

Imagine you're hosting an online garage sale for your old video games. Suddenly, your favorite YouTuber mentions how amazing those games are, causing everyone to want them even more. As word spreads about their awesomeness (increase in demand), you find yourself receiving way more offers from potential buyers.

Related terms

Complementary Goods: Complementary goods are products that are typically used together with another good. When there's an increase in demand for one good, it often leads to an increase for its complementary good as well.

Substitute Goods: Substitute goods are products that can be used as alternatives to each other. An increase in demand for one substitute good often leads to a decrease in demand for its substitute.

Consumer Income: Changes in consumer income can affect the demand for certain goods. When income increases, consumers may have more purchasing power and be willing to buy more of a product.