If we observe an increase in the equilibrium quantity of good A,we know that
A)either the demand for A has increased or the supply of A has decreased or both.
B)either the demand for A has increased or the supply of A has increased or both.
C)either the demand for A has decreased or the supply of A has increased or both.
D)either the demand for A has decreased or the supply of A has decreased or both.
E)the price of A has risen.

Question

Quizplus · Accepted Answer

An increase in the equilibrium quantity of good A can occur if there is an increase in demand (more people want the good) or an increase in supply (more of the good is available) or both. These changes would lead to more of the good being sold at equilibrium.

If We Observe an Increase in the Equilibrium Quantity of Good