What Might Cause a Demand Function to Shift to the Right

question 114

Multiple Choice

What might cause a demand function to shift to the right?

• A)An increase in the price of a substitute.
• B)An increase in the product's own price.
• C)An increase in the price of a complement.
• D)A decrease in the price of a substitute.

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Definitions:

Equilibrium

A state in which market supply and demand balance each other, and as a result, prices become stable.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of offering for sale at a certain price during a defined timeframe.

Equilibrium Price

The equilibrium price is the price at which the quantity of goods suppliers are willing to supply matches the quantity of goods consumers are willing to buy, leading to market equilibrium.

Equilibrium Quantity

The amount of products or services available and sought after at the balance price in a marketplace.