$$\text { Rightward shift in demand } + \text { unchanged supply curve } =$$ higher equilibrium price and larger equilibrium quantity.

Question

Quizplus · Accepted Answer

When there is a rightward shift in demand, the equilibrium quantity demanded increases, which leads to an increase in the equilibrium price. This happens because the higher demand creates a shortage, causing the price to rise until the market reaches a new equilibrium point where the quantity supplied equals the quantity demanded. If the supply curve remains unchanged, the quantity supplied will remain the same, but the market price will increase. Therefore, a rightward shift in demand with an unchanged supply curve leads to both higher equilibrium price and larger equilibrium quantity. When demand shifts rightward and supply remains the same, there is an increase in both the equilibrium price and quantity. This is because the shift in demand results in higher willingness and ability of consumers to purchase the good, leading to an increase in the quantity demanded. As a result, suppliers are able to sell more of the good at a higher price, leading to an increase in both the equilibrium price and quantity.

Rightward shift in demand + unchanged supply curve =\text { Rightward shift in demand } + \text { unchanged supply curve } = Rightward shift in demand + unchanged supply curve =

$\text { Rightward shift in demand } + \text { unchanged supply curve } =$