An Increase in the Number of Consumers

question 340

Multiple Choice

An increase in the number of consumers

• A) results only in a movement along the demand curve.
• B) shifts the demand curve rightward.
• C) shifts the supply curve leftward
• D) Both answers B and C are correct.

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Definitions:

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services.

Majority Voting

A decision-making process whereby a decision is made based on the preference of more than half of the members voting.

Public Good

This is a good that is non-excludable and non-rivalrous in consumption, meaning it can be used by everyone and one's use does not diminish another's.

Costs

The outlay or expenditure (monetary or otherwise) incurred by a business or individual in the process of producing or offering goods and services.