A rightward shift of the demand curve will lead to an
A) increase in equilibrium price.
B) excess demand at the old equilibrium price.
C) increase in quantity supplied.
D) All of the above.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve indicates an increase in demand. This leads to an increase in the equilibrium price as buyers are willing to pay more, creates excess demand at the old equilibrium price since the quantity demanded exceeds the quantity supplied at that price, and results in an increase in quantity supplied as suppliers respond to the higher price by producing more.

A Rightward Shift of the Demand Curve Will Lead to an