An increase in the number of buyers in the market causes
A) a decrease in equilibrium quantity
B) a decrease in equilibrium price
C) an increase in demand
D) a decrease in production
E) an increase in supply

Question

Quizplus · Accepted Answer

An increase in the number of buyers in the market would result in an increase in demand for the product, as there are more people competing to buy the same product. This typically leads to a shift in the demand curve to the right, which results in an increase in both equilibrium price and quantity. Hence, options (A) and (B) can be eliminated. Similarly, an increase in demand would not lead to a decrease in production, eliminating option (D) and (E). Therefore, the best choice is (C) – an increase in demand.

An Increase in the Number of Buyers in the Market