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?(1 point)

Question

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

a movement upward along the demand curve
a movement upward along the demand curve

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

Answer 1

The correct response is:

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

When the population increases, it typically leads to an increase in the overall demand for goods and services, as more people will be purchasing and consuming these goods and services. Assuming that new immigrants will purchase the same goods and services as the current population, the entire demand curve shifts to the right to reflect this increase in demand.