Questions: Question 7 6 pts 7.A rightward shift in the demand curve for a commodity necessarily means that a. Supply conditions are more favorable. b. Consumers' incomes have fallen. c. The price of complementary goods increased. d. Equilibrium price decreases. e. Equilibrium price increases.

Question 7
6 pts
7.A rightward shift in the demand curve for a commodity necessarily means that
a. Supply conditions are more favorable.
b. Consumers' incomes have fallen.
c. The price of complementary goods increased.
d. Equilibrium price decreases.
e. Equilibrium price increases.
Transcript text: Question 7 6 pts 7.A rightward shift in the demand curve for a commodity necessarily means that a. Supply conditions are more favorable. b. Consumers' incomes have fallen. c. The price of complementary goods increased. d. Equilibrium price decreases. e. Equilibrium price increases.
failed

Solution

failed
failed
Answer

The answer is e. Equilibrium price increases.

Explanation
Option a: Supply conditions are more favorable.

A rightward shift in the demand curve indicates an increase in demand, not a change in supply conditions. More favorable supply conditions would typically shift the supply curve, not the demand curve.

Option b: Consumers' incomes have fallen.

A fall in consumers' incomes would generally lead to a leftward shift in the demand curve for normal goods, as people would have less money to spend. A rightward shift suggests an increase in demand, which could be due to an increase in consumers' incomes.

Option c: The price of complementary goods increased.

If the price of complementary goods increased, the demand for the commodity in question would likely decrease, leading to a leftward shift in the demand curve. A rightward shift suggests that the price of complementary goods has decreased or other factors have increased demand.

Option d: Equilibrium price decreases.

A rightward shift in the demand curve typically leads to an increase in the equilibrium price, as higher demand at the same supply level usually results in a higher price.

Option e: Equilibrium price increases.

When the demand curve shifts to the right, it indicates an increase in demand. Assuming the supply remains constant, this increased demand will lead to a higher equilibrium price as consumers are willing to pay more to obtain the commodity.

Was this solution helpful?
failed
Unhelpful
failed
Helpful