A rightward shift of the demand curve in a market with an upward-sloping supply curve will lead to a(n)
A)increase in equilibrium price.
B)excess demand at the old equilibrium price.
C)increase in quantity supplied.
D)All of the above.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve indicates an increase in demand. This will lead to a higher equilibrium price because suppliers will charge more as demand increases. There will also be excess demand at the old equilibrium price because at that price, the quantity demanded now exceeds the quantity supplied. Finally, the increase in demand will lead to an increase in the quantity supplied as suppliers respond to the higher price by producing more, assuming the supply curve is upward sloping.

A Rightward Shift of the Demand Curve in a Market