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

a movement upward along the demand curve

Answer 1

The correct response is:

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

This is because an increase in population, especially one that is expected to purchase the same goods and services as the current population, will lead to an overall increase in demand. More consumers in the market typically result in a higher quantity demanded at any given price level, thus shifting the demand curve to the right.