by marlan43 » Thu Dec 15, 2011 1:56 pm
Not necessarily! Growth of consumer spending could be the result of price increases only. Since Price is the vertical axis of the Supply/Demand curve, the Demand curve could certainly go UP, assuming the same quantity of items is being demanded by consumers as price increases. But the curve need not go to the right, although it certainly could.
It could go right if consumer spending grew at a slow pace and the quantity of items, along with price, increased correspondingly.