When a consumer joins a network, the private demand curve _____ and the social demand curve _____.
A) does not shift; shifts rightward
B) shifts rightward; does not shift
C) shifts rightward; shifts rightward
D) does not shift; shifts leftward

Question

Quizplus · Accepted Answer

When a consumer joins a network, both the private and social demand curves shift rightward due to the network effect, which increases the value of the product or service for all users.

When a Consumer Joins a Network, the Private Demand Curve