Suppose That the Supply Curve Remains Unchanged

question 232

Multiple Choice

Suppose that the supply curve remains unchanged. If the demand curve shifts to the right

• A) the market clearing price definitely will decrease.
• B) the market clearing price definitely will increase.
• C) there will be no change in the market clearing price.
• D) the market will collapse.

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Definitions:

Food Stamps

Government-issued vouchers used to purchase groceries by individuals and families in need, part of a social assistance program.

Supply And Demand Analysis

An economic model used to understand the pricing and quantity of goods in a market by examining how the availability of a product (supply) and the desire for it (demand) interact.

Demand Curve

The demand curve is a graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers within a given period.

Reservation Price

The maximum price a consumer is willing to pay for a good or service.