An increase in the number of potential buyers in a market will have what effect on demand?

Prepare for the UCF ECO2013 Principles of Macroeconomics Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

An increase in the number of potential buyers in a market leads to an increase in demand. This relationship is grounded in the fundamental principles of supply and demand within economics. When more individuals are present in a market, there is a greater likelihood that these individuals will want to purchase goods or services.

This increase in potential buyers generally results in a higher overall quantity of goods demanded at any given price, effectively shifting the demand curve to the right. This shift indicates a higher demand for the product, as demand is not just about how much is purchased, but also about how many consumers are interested in buying. Thus, with an influx of new buyers contributing to the overall market participation, businesses can expect to sell more of their products, reflecting a clear increase in demand.

The other possible options would not accurately reflect the dynamics of market behavior in response to changes in the number of buyers.

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