With a given supply curve, if the demand curve shifts to the right, _____.
A) both the equilibrium price and quantity will increase
B) the equilibrium price will increase but the equilibrium quantity will decrease
C) the equilibrium price will decrease but the equilibrium quantity will increase
D) both the equilibrium price and quantity will decrease

Question

Quizplus · Accepted Answer

When the demand curve shifts to the right, it indicates an increase in demand at every price level. This leads to a higher equilibrium price and quantity because suppliers can charge more due to increased demand, and they are also willing to supply more at the higher price.

With a Given Supply Curve, If the Demand Curve Shifts