48. A food truck owner notices that the truck runs out of food every time the local sports team plays a rival. During these events, many additional fans from out of town make food purchases. What is the effect on market demand in this scenario?
Answer: B
A shift of demand to the right
The scenario describes an increase in demand for food from the food truck during local sports events due to the influx of additional fans. This increase in demand is represented by a rightward shift of the demand curve.
A) A movement up and to the left along the demand curve
This option is incorrect as a movement up and to the left along the demand curve indicates a decrease in quantity demanded at higher prices, which does not align with the increased demand observed during sporting events.
B) A shift of demand to the right
This option is correct as it reflects the increased demand for food from the food truck during sports events. The influx of additional fans from out of town leads to more food purchases, indicating a shift to the right in the demand curve, signifying higher demand at every price level.
C) A movement down and to the right along the demand curve
This option is incorrect because a movement down and to the right along the demand curve suggests an increase in quantity demanded at lower prices, rather than an overall increase in demand. The scenario indicates that demand is increasing due to external factors, not just price changes.
D) A shift of demand to the left
This option is incorrect as a leftward shift in the demand curve indicates a decrease in demand. The scenario clearly shows an increase in demand during local sports events, contradicting this option.
Conclusion
The correct answer is a rightward shift of demand, as it accurately represents the increased food purchases during local sports events due to additional fans. All other options fail to capture the essence of increased demand, either misrepresenting the relationship between price and quantity or indicating a decrease in demand when the opposite is true.