Question

When The demand curve shifts to the right and the supply curve is held constant:______.

A. You see a movement along the demand curve
B. The equilibrium price decreases and the Equilibrium quantity increases
C. The equilibrium price increases and the equiibrium quantity decreases
D. The equilibrium price and quantity increases
E. The equilibrium Price and quantity decrease

Answer 1

D. The equilibrium price and quantity increases

Step-by-step explanation:

When the demand curve shifts to the right and the supply curve is held constant, the equilibrium price and quantity increases.

A rightward shift in the demand curve from D1 to D2 an a supply curve S held constant, the equilibrium price increases from P1 to P2 and equilibrium quantity increases from Q1 to Q2.

Therefore, a shift in demand curve to the right at a constant supply curve will increase equilibrium price and quantity.

See graph attached for more information