117k views
2 votes
If a demand curve shifts to the right, what happens to the price and the quantity demanded?

A) The price falls, and the quantity demanded remains the same.
B) The price rises, and the quantity demanded goes down.
C) The price remains the same, and the quantity demanded goes up.
D) The price remains the same, and the quantity demanded goes down.

User Sturla
by
7.3k points

1 Answer

3 votes

Final answer:

When a demand curve shifts to the right, the price remains the same or may increase slightly, but the quantity demanded increases.

Step-by-step explanation:

When a demand curve shifts to the right, it indicates an increase in demand. This means that at every given price, the quantity demanded is higher, so the entire demand curve shifts to the right. The price remains the same or may even increase slightly, but the quantity demanded increases.

For example, if the original quantity demanded at a price of $18,000 is 16.0 million, when the demand curve shifts to the right, the quantity demanded at the same price may increase to 17.6 million or more.

When a demand curve shifts to the right, it indicates an increase in demand for a product or service at every given price level. This typically causes the price to rise due to higher demand, and the quantity demanded also increases because more consumers are willing to buy the product at higher prices.

Conversely, a leftward shift would indicate a decrease in demand, leading to a lower price and quantity demanded. Therefore, the correct answer is B) The price rises, and the quantity demanded goes down.

User Jori
by
7.9k points