62. 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
In this scenario, the food truck owner experiences increased demand for food during local sports events, particularly when many out-of-town fans make purchases. This indicates a positive change in demand, represented by a shift to the right on the demand curve.
A) A shift of demand to the left
This option is incorrect because a shift to the left would indicate a decrease in demand. However, the scenario clearly demonstrates that demand increases during local sports events, which contradicts a leftward shift.
B) A shift of demand to the right
This option is correct as it accurately reflects the increase in demand observed when the local sports team plays a rival. The influx of additional fans leads to more food purchases, indicating a rightward shift in the demand curve.
C) A movement up and to the left along the demand curve
This option is incorrect because a movement up and to the left suggests a decrease in quantity demanded at higher prices. However, the scenario illustrates an overall increase in demand rather than a change in price leading to a decrease in quantity demanded.
D) A movement down and to the right along the demand curve
This option is also incorrect, as a movement down and to the right would suggest an increase in quantity demanded at lower prices, rather than an overall increase in demand due to external factors such as additional fans attending the game.
Conclusion
The correct answer is a shift of demand to the right, which reflects the increased demand for food during local sports events as more fans make purchases. All other options fail to account for the heightened interest and purchasing behavior driven by the influx of out-of-town fans, thus misrepresenting the scenario's impact on market demand.