A rightward shift of the market demand curve for drones,ceteris paribus,causes equilibrium
A)Price to increase and equilibrium quantity to decrease.
B)Price to decrease and equilibrium quantity to decrease.
C)Price to increase and equilibrium quantity to increase.
D)Price to decrease and equilibrium quantity to increase.

Question

Quizplus · Accepted Answer

A rightward shift in the market demand curve indicates that there is an increase in demand for drones. As a result, the equilibrium price and quantity will both increase. This is because as demand increases, the price that consumers are willing to pay for drones increases, leading to a higher market price. At the same time, suppliers are incentivized to produce more drones to capture the higher prices, leading to an increase in the equilibrium quantity.

A Rightward Shift of the Market Demand Curve for Drones,ceteris