When the Demand Curve Shifts to the Right and the Supply

question 83

Multiple Choice

When the demand curve shifts to the right and the supply curve is held constant:

• A) the equilibrium price and quantity decrease.
• B) the equilibrium price increases, and the equilibrium quantity decreases.
• C) the equilibrium price decreases, and the equilibrium quantity increases.
• D) the equilibrium price and quantity increase.
• E) you see a movement along the demand curve.

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Definitions:

Normal Good

A type of good for which demand increases as the income of consumers increases, showing a positive relationship between income and demand.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Output

The total amount of goods or services produced by a company or industry over a specific period.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.