If the market for a good is initially in equilibrium and there is a rightward shift of the demand curve,then
A) the equilibrium price will fall
B) there will be a rightward movement along the supply curve
C) the supply curve will also shift to the right
D) the supply curve will shift to the left
E) the demand curve will shift back as consumers react to the higher equilibrium price

Question

Quizplus · Accepted Answer

A rightward shift of the demand curve increases the quantity demanded at each price, leading to a higher equilibrium price and quantity, causing a movement along the supply curve to the right.

If the Market for a Good Is Initially in Equilibrium