Question

Which of the following cannot happen with an increase in demand, other things unchanged?

		Equilibrium price increases.
		The demand curve shifts to the left.
		The demand curve shifts to the right.
		Equilibrium quantity increases.

Answer 1

When there is an increase in demand , the demand curve shifts to the right . As a result of this , Equilibrium price and quantity both increases. And when there is decrease in demand ,then the demand curve shifts to the left. This means with an increase in demand , other things unchanged , the demand curve cannot  shift to the left. Hence, option(B) is correct.