When Clutchtopia implemented a free pizza policy, it led to a significant increase in immigration, effectively doubling the population. This demographic change directly impacts the demand for bar soap, as a larger population means more consumers in the market. Consequently, the demand for bar soap is expected to rise due to the increased number of potential buyers.
In economic terms, demand refers to the quantity of a good that consumers are willing and able to purchase at various price levels. With the population doubling, the demand curve for bar soap shifts to the right, indicating an increase in demand. This shift can be visually represented on a graph where the initial demand curve (D1) moves to a new position (D2) on the price and quantity axes.
To illustrate this, consider the following: if the original demand curve is labeled D1, the new demand curve after the population increase would be labeled D2. The rightward shift signifies that at every price point, consumers are now willing to purchase more bar soap than before. This relationship highlights a fundamental principle in economics: as the number of consumers increases, the overall demand for goods and services also increases.
In summary, the doubling of Clutchtopia's population leads to a higher demand for bar soap, represented by a rightward shift in the demand curve. This scenario exemplifies how changes in consumer demographics can significantly influence market demand.