If the demand curve facing a firm shifts outward,then
A)there is a decline in the maximum price the firm can charge at each quantity it may want to sell
B)there is an increase in the maximum price the firm can charge at each quantity it may want to sell
C)the firm would need to increase the quantity it wants to sell in order to generate a rise in the price
D)the firm would need to decrease the quantity it wants to sell in order to generate a rise in the price
E)there is a decrease in the maximum quantity the firm can sell at each price it may want to charge

Question

Quizplus · Accepted Answer

When the demand curve facing a firm shifts outward, it means that consumers are willing to purchase more of the firm's product at every given price. This creates an increase in the maximum price the firm can charge at each quantity it may want to sell because there is now greater demand for the product. As a result, the firm can charge more and potentially earn greater profits.

If the Demand Curve Facing a Firm Shifts Outward,then