Join thousands of students who trust us to help them ace their exams!Watch the first video
Multiple Choice
The market demand for a product has increased if:
A
the demand curve shifts to the left
B
the price of the product increases, holding demand constant
C
the quantity demanded decreases at every price
D
the demand curve shifts to the right
Verified step by step guidance
1
Understand that the market demand curve shows the relationship between the price of a product and the quantity demanded by consumers at each price level.
Recall that a shift in the demand curve means a change in demand at every price, not just a movement along the curve due to price changes.
Recognize that an increase in demand is represented by the demand curve shifting to the right, indicating consumers want to buy more of the product at every price.
Note that a shift to the left means a decrease in demand, while changes in price alone cause movements along the demand curve, not shifts.
Therefore, the correct condition for an increase in market demand is when the demand curve shifts to the right.