How to Increase Memory for Android Emulator

This is an issue often faced when setting up the Android Emulator for the first time.
Usually it runs nicely for sometime and then starts giving INSTALL_FAILED_INSUFFICIENT_STORAGE error.

It does not depend on the application size also. Usually, if we restart the emulator the problem goes away but only temporarily. To properly solve this, we need to increase the emulator's memory size.

To do that follow this thread on stackoverflow.com here.