An increase in the quantity demanded means that:
A. given supply, the price of the product can be expected to decline.
B. price has declined and consumers therefore want to purchase more of the product.
C. the demand curve has shifted to the right.
D. the demand curve has shifted to the left.
Answer: B
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A tax cut designed to encourage investment and stimulate economic growth
a. must be matched by a cut in government spending in order to be effective b. must be matched with tax increases in other areas, or with a cut in government spending, if crowding out is to be avoided c. will only work if it decreases the size of the budget deficit d. can only be effective if the tax burden is redistributed or government spending is cut e. will only work if it is a cut in the capital gains tax
The equilibrium price and quantity of a good, once attained, will
a. change only if either supply or demand changes b. change only if both supply and demand change c. change only if supply changes d. change only if demand changes e. never change