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In a hypothetical country, the population is expected to increase by following recent legislation relaxing the barriers that restrict immigration. It is expected that the new immigrants will purchase the same goods and services as the current population does. If all other economic forces are held constant, how would this increase in population influence demand?(1 point)

Responses

a movement downward along the demand curve
a movement downward along the demand curve

shift the demand curves for all goods and services to the right
shift the demand curves for all goods and services to the right

shift the demand curves for all goods and services to the left
shift the demand curves for all goods and services to the left

a movement upward along the demand curve
a movement upward along the demand curve
Question 8
Which of the following satisfy the law of supply? Select the two correct answers.(2 points)
Responses

An increase in price is followed by an increase in supply.
An increase in price is followed by an increase in supply.

A decrease in price is followed by a decrease in supply.
A decrease in price is followed by a decrease in supply.

An increase in price is followed by an increase in quantity supplied.
An increase in price is followed by an increase in quantity supplied.

A decrease in price is followed by a decrease in quantity supplied.
A decrease in price is followed by a decrease in quantity supplied.

A increase in price is followed by a decrease in quantity supplied.

1 answer

For the first question regarding the impact of an increase in population due to relaxed immigration laws on demand, the correct answer is:

shift the demand curves for all goods and services to the right.

This is because an increase in population implies more consumers in the market, leading to increased demand for goods and services.

For the second question regarding which statements satisfy the law of supply, the two correct answers are:

  1. An increase in price is followed by an increase in quantity supplied.
  2. A decrease in price is followed by a decrease in quantity supplied.

The law of supply states that, all other factors being equal, an increase in price results in an increase in the quantity supplied, and a decrease in price results in a decrease in the quantity supplied.