What does an increase in population typically lead to in terms of demand?

Disable ads (and more) with a premium pass for a one time $4.99 payment

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!

An increase in population typically leads to an increase in demand because as more individuals enter the market, there are more people who require goods and services. Each additional person has their own needs and preferences, which can drive up the overall consumption within the economy. When demand increases, it is often represented by a shift of the demand curve to the right, indicating that at every price level, a larger quantity of goods and services is being demanded. This response is grounded in the basic economic principle that population growth expands the market base, leading to greater overall demand for various products and services.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy