Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It will decrease
B
It will remain unchanged
C
It will increase
D
It will fluctuate unpredictably
Understanding the Answer
Let's break down why this is correct
Answer
When the demand curve for a product shifts to the right, it means that more people want to buy that product at every price level, which often happens when consumer income increases. This higher demand leads to a situation where, at the original price, there are more buyers than the available quantity of the product. As a result, sellers will notice that they can sell more and may decide to raise their prices. This price increase encourages producers to supply more of the product, ultimately leading to a higher equilibrium quantity in the market. For example, if more people can afford to buy organic apples due to a rise in income, the grocery store will sell more apples, increasing the quantity available in the market.
Detailed Explanation
When people have more money, they want to buy more things. Other options are incorrect because Some might think that more demand means less supply; It's a common mistake to think that demand changes don't affect quantity.
Key Concepts
demand curve
equilibrium quantity
market analysis.
Topic
Market Demand and Equilibrium Changes
Difficulty
hard level question
Cognitive Level
understand
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