Increase in demand and Decrease in demand.

Question

Distinguish between:

Increase in demand and Decrease in demand.

Answer 1

Increase in Demand	Decrease in Demand
(a) Increase in demand refers to a rise in demand due to changes in other factors, price remaining constant.	(a) Decrease in demand refers to fall in demand due to changes in other factors, price remaining constant.
(b) Increase in demand occurs when more is purchased at the same price.	(b) Decrease in demand occurs when less is purchased at the same price.