Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Market Equilibrium

Question:

Arrange the following statement when the market demand curve shifts rightward with the supply curve remaining unchanged.

(A) The shift indicates that at any price the quantity demanded is more than before.
(B) Some individuals will be willing to pay higher price and the price would tend to rise.
(C) There is excess demand.
(D) At the new equilibrium, quantity and price will be greater than before.

Choose the correct answer from the options given below:

Options:

(A), (B), (C), (D)

(A), (C), (B), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

Correct Answer:

(A), (C), (B), (D)

Explanation:

The correct answer is Option (2) → (A), (C), (B), (D)

  • (A)The shift indicates that at any price the quantity demanded is more than before. This describes what a rightward shift of the demand curve means — greater demand at each price.

  • (C)There is excess demand. At the original equilibrium price, the new, higher quantity demanded (from the shifted demand curve) is greater than the quantity supplied (which remains on the unchanged supply curve). This difference is a shortage or excess demand.

  • (B)Some individuals will be willing to pay higher price and the price would tend to rise. Excess demand pushes the price upward as buyers compete to purchase the limited supply.

  • (D)At the new equilibrium, quantity and price will be greater than before. A new equilibrium is established where both price and quantity are higher than before.