Population growth will cause a change in which market variable?

• A. Price
• B. Elasticity
• C. Demand
• D. Supply

Answer: (C)

When population grows, the number of buyers in the market increases, so overall demand for goods and services rises. This shifts the demand curve to the right, meaning more is demanded at each price. That direct change is in demand, which is why population growth affects this market variable.

Price will adjust as the new demand interacts with supply, but the immediate effect of more people is not a change in price itself or in elasticity. Elasticity measures how responsive quantity moves to price changes, and supply is determined by producers and resources; population growth doesn’t directly alter those factors, even though it can influence price later through the demand shift.