A rightward shift of the demand curve indicates what condition?

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Study for the GCSE Economics Exam with comprehensive flashcards and multiple choice questions. Each question includes hints and detailed explanations. Prepare thoroughly for your exam!

A rightward shift of the demand curve indicates an increase in demand within the market. When the demand curve shifts to the right, it reflects that consumers are willing to purchase more of a good or service at every possible price level. This can occur due to various factors, including changes in consumer preferences, increases in income, the introduction of complementary products, or even changes in demographics.

For example, if a new health study reveals that a certain food is particularly beneficial, people may decide they want to buy more of that food even if the price remains the same. As a result, the overall demand increases, causing the demand curve to shift to the right.

In contrast, other options relate to different economic concepts. A decrease in demand would result in a leftward shift of the demand curve, while no change in demand means that the curve does not shift at all. An increase in supply would shift the supply curve, not the demand curve. Thus, the correct interpretation of a rightward shift in the demand curve is that it shows an increase in demand.

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