Suppose your bank opens up a dozen more branches throughout the city, making it much easier to find an ATM. What happens to the demand and supply curves for this network as it expands?
A) Demand and supply both shift left.
B) Demand and supply both shift right.
C) Demand shifts right and supply shifts left.
D) Demand shifts left and supply shifts right.

Question

Quizplus · Accepted Answer

When a bank opens more branches, it becomes more accessible, increasing the convenience for customers. This expansion is likely to increase the demand for the bank's services as more people find it easier to use the bank's ATMs. Additionally, by opening more branches, the bank increases its supply of services to customers. Therefore, both the demand and supply curves shift to the right.

Suppose Your Bank Opens Up a Dozen More Branches Throughout