Other things remaining same,a rightward shift in the demand curve will lead to a(n)________.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve implies that consumers are willing to buy more quantity of the good at the same price, i.e., there is an increase in demand. This will lead to an increase in the equilibrium quantity as suppliers will increase production to meet the higher demand. However, the increase in demand will also lead to an increase in the equilibrium price as suppliers will be willing to charge a higher price due to the increased demand. Hence, the correct answer is A.

Other Things Remaining Same,a Rightward Shift in the Demand Curve