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

A rightward shift of the demand curve indicates an increase in demand at every price level, which can lead to both a higher equilibrium price and a higher equilibrium quantity, as described in the scenario.

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