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

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

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

Answer 1

In this scenario, the expected increase in population by 25% due to relaxed immigration laws would lead to an increase in demand for goods and services, as the new immigrants will likely purchase similar amounts of goods and services as the current population.

Since demand is influenced by the number of consumers in the market, an increase in population will result in a rightward shift of the demand curve for all goods and services.

Therefore, the correct response is:

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