The current market price for good X is below the equilibrium price, and then the demand curve for X shifts rightward. What is the likely outcome of the demand shift?

A) The surplus increases.
B) The surplus decreases.
C) The shortage increases.
D) The shortage decreases.

Equilibrium Price

The market price at which the quantity of a good demanded equals the quantity supplied, leading to market equilibrium.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward-sloping due to the law of demand.

Surplus

The excess of supply over demand in a market, typically resulting in downward pressure on prices.