What if some of these factors do change? For example, if advertising causes more people to want Red Baron frozen cheese pizzas, demand will increase. Now the initial demand curve, D1 (the blue line in Figure 13-4B), no longer represents the demand. Instead, the new demand curve, D2 (the red line in Figure 13-4B) represents the new demand for Red Baron frozen cheese pizzas. Economists call this ______________________—in this case, a shift to the right from D1 to D2. This increased demand means that more Red Baron frozen cheese pizzas are wanted for a given price. At a price of $6 (point 3), the demand is 5 million units per year (Q3) on D2 rather than 3 million units per year (Q2) on D1.
