What would an increase in demand for a product indicate?

An increase in demand for a product indicates higher consumer interest at the same price. When demand rises, it typically reflects that more consumers want to purchase the product, often due to factors such as increased popularity, effective marketing, or perceived value. This heightened interest means that consumers are willing to buy more of the product at the current price, which can lead businesses to adjust their supply and pricing strategies in response.

The other options present different economic situations that do not directly relate to demand increases. For example, lower production costs may influence the supply side of the market but do not inherently affect consumer demand. Similarly, decreased availability suggests a reduced supply, not necessarily an increase in demand. Increased consumer spending can correlate with demand but does not specifically define its nature or indicate higher interest at the same price point. Thus, the correct answer reflects a clear understanding of the relationship between price and consumer interest.