In a hypothetical country, the population is expected to increase by 25% 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?
A.a movement downward along the demand curve
B.shift the demand curves for all goods and services to the left
C. a movement upward along the demand curve
D shift the demand curves for all goods and services to the right
1 answer
D. shift the demand curves for all goods and services to the right. With a 25% increase in population, there will be a corresponding increase in the number of consumers who demand goods and services, causing a rightward shift of the demand curve. This means that at any given price level, there will be a higher quantity demanded.