The correct answer is: Price will rise.
When the demand curve shifts to the right, it means that consumers are willing to buy more of the good at any given price. This puts upward pressure on the price of the good. In the case of a vertical supply curve, the price will rise until the quantity demanded equals the quantity supplied.
Here is a diagram to illustrate the effect of a rightward shift in the demand curve on a market with a vertical supply curve:
[Diagram of a market with a vertical supply curve and a rightward shift in the demand curve. The price rises from P1 to P2, and the quantity sold rises from Q1 to Q2.]
As you can see, the rightward shift in the demand curve causes the price to rise from P1 to P2. The quantity sold also rises from Q1 to Q2. This is because the higher price makes it profitable for producers to produce more of the good.
Here is a brief explanation of each option:
- Price will fall. This is not the correct answer because the rightward shift in the demand curve puts upward pressure on the price.
- Price remains same. This is not the correct answer because the rightward shift in the demand curve causes the price to rise.
- Quantity rises. This is the correct answer because the rightward shift in the demand curve causes the quantity demanded to rise, which in turn causes the quantity supplied to rise.
- Quantity falls. This is not the correct answer because the rightward shift in the demand curve causes the quantity demanded to rise, which in turn causes the quantity supplied to rise.