A rightward shift of the market demand curve for MP3 players, ceteris paribus, causes equilibrium
A) Price to increase and equilibrium quantity to decrease.
B) Price to decrease and equilibrium quantity to decrease.
C) Price to increase and equilibrium quantity to increase.
D) Price to decrease and equilibrium quantity to increase.

Question

Quizplus · Accepted Answer

A rightward shift in the demand curve indicates that consumers are willing to purchase more MP3 players at every given price. As a result, the equilibrium price will increase as suppliers will be willing to supply the product at a higher price due to increased demand. The quantity of MP3 players sold in the market will also increase, resulting in an equilibrium quantity increase.

A Rightward Shift of the Market Demand Curve for MP3