Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box.The most likely interpretation of these data is that the
A)supply and demand curves are shifting to the right.
B)supply and demand curves are shifting to the left.
C)the supply curve has shifted to the left, with no change in demand.
D)the demand curve has shifted to the right, with no change in supply.

Question

Quizplus · Accepted Answer

The increase in the quantity sold from 2,000 to 2,500 boxes suggests a shift in the demand curve to the right, as consumers are willing to purchase more of the product at the given price. The price increase from $20 to $25 per box may also contribute to this shift, as it could indicate an increased perceived value of the product or a decrease in the availability of alternative options. There is no evidence to suggest a shift in the supply curve.

Over the Previous Year, 2,000 Boxes of Antihistamine Tablets Were