If consumer demand increases as the price decreases, what happens to the demand curve?

When consumer demand increases as the price decreases, it indicates a positive relationship between demand and price in the context of consumer behavior. In standard economic theory, this scenario reflects the law of demand, which states that as the price of a good decreases, the quantity demanded typically increases.

When the demand curve itself shifts to the right, it represents an overall increase in demand at every price level. This shift suggests that more consumers are willing to buy the good at any given price, showing increased market interest or purchasing power. Factors that can cause this shift to the right include increased consumer income, favorable changes in consumer preferences, or a decrease in the price of complementary goods.

In summary, the correct answer signifies that a decrease in price leading to an increase in demand changes the position of the demand curve to the right, indicating a higher quantity demanded across varying price points.