If the Demand Curve Is Horizontal a Rightward Shift of the Supply

question 58

Multiple Choice

If the demand curve is horizontal a rightward shift of the supply curve will lead to

• A)an increase in quantity supplied.
• B)an increase in price.
• C)a decrease in quantity demanded.
• D)a decrease in price.

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Definitions:

Pepsi

A carbonated soft drink manufactured by PepsiCo, considered one of the most recognizable beverage brands worldwide.

Coke

A carbonated soft drink that has become a globally recognized brand, or alternatively, a fuel derived from coal.

Quantity Demanded

The amount of a product consumers are willing and able to purchase at a specific price.

Law of Demand

A fundamental principle in economics that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers, holding other factors constant.