If at the market equilibrium, the supply is a vertical line and the downward sloping demand curve shifts to the right, then:

Price will fall

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Price remains same

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Price will rise

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Quantity rises

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Solution

The correct option is C
Price will rise

In market equilibrium, supply is vertical line. The downward sloping demand curve shifts to the right. Then price will rise along the vertical sloping supply curve.

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Similar questions

How are the equilibrium price and quantity affected when

(a) both demand and supply curves shift in the same direction?

(b) demand and supply curves shift in opposite directions?

When both demand and supply increase, the equilibrium quantity rises but the change in equilibrium price is ambiguous.

How are the equilibrium price and quantity affected when both demand and supply curves shift in the same direction?

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