104k views
1 vote
How does an increase in population affect the demand curve (economics)?

1 Answer

3 votes

Final answer:

An increase in population can lead to an upward shift of the demand curve in economics due to the higher quantity demanded at each price level and potential changes in consumer preferences and income levels.

Step-by-step explanation:

An increase in population can affect the demand curve in economics. When the population increases, there is generally a higher demand for goods and services. This is because there are more consumers in the market, leading to an increase in the quantity demanded at each price level. For example, if there is an increase in population in a city, the demand for housing, food, clothing, and other goods and services will also increase.

Additionally, an increase in population can also lead to changes in consumer preferences and income levels, which can further impact the demand curve. For instance, a growing population might have different preferences and demands compared to an older population, leading to shifts in the demand curve for certain products or services.

Overall, an increase in population can result in an upward shift of the demand curve due to the higher quantity demanded at each price level and potential changes in consumer preferences and income levels.

User Noaki
by
7.8k points