When there is an increase in demand,
A)the demand curve shifts toward the origin of the graph.
B)the demand curve twists clockwise.
C)the demand curve shifts away from the origin of the graph.
D)the demand curve twists counterclockwise.
E)a lower price has increased the amount of the good that consumers will buy.

Question

Quizplus · Accepted Answer

An increase in demand means that at any given price, consumers are willing to buy more of a good or service. This results in a shift of the demand curve to the right, away from the origin. Therefore, choice C is the correct answer. Choice A and B are incorrect because the demand curve does not twist or rotate. Choice D is incorrect because a counterclockwise rotation of the demand curve represents a decrease in demand. Choice E is a true statement but not directly related to the question.

When There Is an Increase in Demand