Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

With an increase in demand there will be _________ in demand curve.

Options:

Leftward shift

Rightward shift

Shift towards origin

No shift

Correct Answer:

Rightward shift

Explanation:

The correct answer is option 2: Rightward shift

  • An increase in demand means that at every price level, consumers are willing to buy more than before.
  • This causes the demand curve to shift to the right because higher demand leads to higher quantity demanded at the same price.

Why Other Options Are Incorrect?

  • Leftward shift → Incorrect, because a leftward shift represents a decrease in demand, not an increase.
  • Shift towards origin → Incorrect, as demand does not move towards the origin when it increases.
  • No shift → Incorrect, because an increase in demand always causes the demand curve to shift.