A Rightward Shift in a Demand Curve and a Rightward

question 31

Multiple Choice

A rightward shift in a demand curve and a rightward shift in a supply curve both result in a

• A)Lower equilibrium price.
• B)Lower equilibrium quantity.
• C)Higher equilibrium price.
• D)Higher equilibrium quantity.

---

Definitions:

Price Elasticity

The extent to which changes in price affect the demand for a specific good.

Completely Inelastic

A situation where the quantity demanded or supplied does not change regardless of changes in price.

Infinitely Elastic

Describes a market situation in which the quantity demanded or supplied changes by an unlimited amount in response to any change in price, indicative of perfect competition.

Elastic

A term used in economics to describe a situation in which the supply or demand for a good or service is sensitive to changes in price.