Suppose the equilibrium price of bottled water has risen from $1.00 per bottle to $2.00 per bottle and the equilibrium quantity has increased. These changes are a result of a shift of the
Curve for bottled water.

Question

Quizplus · Accepted Answer

When the equilibrium price has risen and the equilibrium quantity has increased, it means that there was an increase in demand while the supply remained relatively constant. Therefore, the demand curve shifted rightward.

Suppose the Equilibrium Price of Bottled Water Has Risen from $1.00