We all know that a Change in the price of the good results in the movement along the same demand curve.
<u>A rightward shift </u><u>in demand(i.e from D to D1</u>) would <u>increase the quantity demanded at all prices</u> compared to the original demand curve.Thus we can say that there is an increase in demand.
On the other hand a <u>left shift </u>indicates<u> decrease in demand</u>.
Relative scarcity refers to the basic economic problem that our wants are unlimited while our resources -<em>land, labor, capital, and entrepreneurship</em>- are limited. As there is an imbalance between our wants and our resources, individuals must compare one good over the other to analyze what is the advantage of acquiring one over the other. The solution is a trade-off.