Final answer:
A determinant of demand that can increase demand is a rise in consumer income, which enhances the purchasing power and shifts the demand curve to the right for goods like automobiles.
Step-by-step explanation:
A determinant of demand that would cause demand to increase can be a rise in consumer income. When people earn more money, their purchasing power increases, making them more capable of buying goods and services. Income is one of the non-price factors that affects demand. To illustrate, consider an initial demand curve for automobiles shown as Do. If consumer income increases, people can afford to buy more cars even if the price remains at $20,000 per car, resulting in a higher quantity demanded than the initial 18 million cars at point Q. Consequently, an increase in income shifts the entire demand curve to the right, representing an overall increase in demand for the product.
Other factors that can shift demand include changes in consumer preferences, the prices of related goods, expectations of future prices, and demographic changes. For example, if a new technology makes a particular video game more desirable, the demand for that game will likely increase. Similarly, if there is an increase in the demand for the good produced, like an automobile, the demand for labor to produce it will also rise due to the higher output price and profitability.