What will happen when there is a rightward shift in the demand curve?
A) The product price will instantaneously adjust downward.
B) Product prices do not change in this situation.
C) Producers will decrease the product price.
D) A new, higher price is not instantaneously achieved, but the price will rise over time.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve indicates an increase in demand for the product. In the short run, the product price may not adjust upward immediately due to existing inventory and production constraints. However, over time, producers will see the increased demand and adjust the price upward to captures the benefits of the increased demand.

What Will Happen When There Is a Rightward Shift in the Demand