Suppose the supply curve for sugar shifts to the right, all else constant. In this case, there will be a _____ the demand curve.Multiple choice question.movement alongrightward shift of
Question
Suppose the supply curve for sugar shifts to the right, all else constant. In this case, there will be a _____ the demand curve.Multiple choice question.movement alongrightward shift of
Solution
The correct answer is "movement along". When the supply curve for a good shifts to the right, all else being constant, it means that the supply of the good has increased. This does not affect the demand curve, but it does cause a movement along the demand curve. This is because the increased supply results in a decrease in the price of the good, assuming demand remains constant. As the price decreases, consumers are willing to buy more of the good, which is represented by a movement along the demand curve to the right.
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