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

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

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 downward along the demand curve

Answer 1

The correct response is:

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

An increase in population typically leads to an increase in demand for goods and services, as more people generally mean more consumers. This would shift the demand curves to the right.