Arizona State University (ASU) ECN212 Microeconomic Principles Exam 1 Practice

Shifting a demand curve to the right signifies an increase in demand, meaning that at every price level, consumers are now willing to purchase more of the good or service than before. This could be due to factors such as an increase in consumer income, a rise in population, changes in consumer preferences, or an increase in the price of substitute goods, among other factors.

In microeconomic terms, this shift indicates that there is a greater willingness among consumers to buy at all price points, reflecting a more favorable market condition for the product. Understanding this concept is crucial for analyzing how changes in the external environment affect market dynamics and consumer behavior.