An increase in the number of buyers in a purely competitive market would shift the market demand curve to the:
A) left, and an individual seller's demand curve upward.
B) right, and an individual seller's demand curve upward.
C) left, and an individual seller's demand curve downward.
D) right, and an individual seller's demand curve downward.

Question

Quizplus · Accepted Answer

An increase in the number of buyers in a market increases the overall demand for a product, shifting the market demand curve to the right. In a purely competitive market, this increased demand is distributed among many sellers, effectively increasing the demand faced by each individual seller, which is represented by an upward shift in an individual seller's demand curve.

An Increase in the Number of Buyers in a Purely