Which of the following describes a rightward shift in the demand curve?

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BlackTom AI · Accepted Answer

Here is the question and each answer choice analyzed in turn to understand how a rightward shift in the demand curve is described.
Option 1: 'A decrease in demand at every price level.' This statement describes a leftward shift in the demand curve, not a rightward shift. A leftward shift means consumers are willing to buy less at all prices, so it contradicts the idea of an outward (rightward) shift.
Option 2: 'Increased supply at every price level.' This option references the supply side, not demand. Shifts in the demand curve are caused by factors that affect consumers’ willingness or ability to purchase, whereas changes in supply come from producers. Therefore, this choice does not describe a demand shift.
Option 3: 'An increase in demand at every price level.' This is the classic description of a rightward (outward) shift of the demand curve: the quantity demanded rises at all price points, due to factors like higher income, a higher price of substitutes, increased population, or favorable expectations, among others. It aligns with the standard definition of a demand shift.
Option 4: 'A decrease in quantity demanded.' This statement corresponds to movement along the demand curve when price changes, not a shift of the entire demand curve. A decrease in quantity demanded at a given price is a movement along the curve, whereas a shift would involve a change in the curve itself. Hence, this does not describe a rightward shift.

In summary, the options address distinct concepts: some describe shifts in demand (rightward or leftward), some point to shifts in supply, and some refer to movements along the curve. The only choice that matches a rightward shift of the demand curve is the one indicating an increase in demand at every price level.

Which of the following describes a rightward shift in the demand curve?

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Which of the following describes a rightward shift in the demand curve?

View Explanation

Log in for full answers

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