When the Demand Curve Shifts Rightward and the Market Moves

question 101

Multiple Choice

When the demand curve shifts rightward and the market moves to a new equilibrium,then the

• A) supply increases.
• B) supply decreases.
• C) quantity supplied increases.
• D) quantity supplied decreases.
• E) price falls to restore the equilibrium.

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Definitions:

Inventory

The total amount of goods or materials held in stock by a business, including raw materials, work-in-progress, and finished goods.

Inconsistency

The quality of being irregular, erratic, or not consistent in principles, actions, or outcomes, often leading to unpredictability or conflict.

Load Factor

In the context of utilities, it's a measure of the efficiency of energy usage, calculated as the ratio of average load to the peak load in a given period.

Operating Expense

Costs associated with the day-to-day functions of a business, excluding direct production costs.