Home › AP Macroeconomics › Economics › Demand and Supply › The share of elderly citizens in the United Stat…
The share of elderly citizens in the United States population has been rising for decades. What effect does an aging population have on the demand curve for goods used mainly by older people, such as nursing homes and hearing aids?
AIt shifts the demand curve for those goods left
BIt shifts the demand curve for those goods right
CIt moves buyers along the existing demand curve
DIt has no effect on demand for those goods
Answer & Solution
Correct answer: B. It shifts the demand curve for those goods right
1. The size and composition of the population is a demand determinant separate from price.
2. A larger elderly share raises the quantity of nursing-home and hearing-aid services demanded at every price.
3. A curve showing a higher quantity at every price has shifted to the right.
4. This is a change in demand itself, so options C and D, which describe no shift or only movement, are wrong.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.2 | Shifts in Demand and Supply for Goods and Services_
Related questions
A city's movie theaters reach a free-market equilibrium of $8 per ticket with 1,800 peopleA new back-pain drug would sell at a free-market equilibrium price of $600 per month, withWhat is the loss in total surplus that occurs when an economy produces at an inefficient qA seller would have been willing to accept less for a good than the market equilibrium priA consumer would have been willing to pay more for a good than the market equilibrium pricIf a government sets a price floor below the market equilibrium price, what is the expecteWhat hourly rate was the federal minimum wage set at, at the end of 2014?Rising incomes in a city shift the demand curve for rental housing to the right, moving th