Which of the following would result from an increase in the demand for a good?
A) Both equilibrium price and quantity would rise.
B) Both equilibrium price and quantity would fall.
C) Equilibrium price would rise, and equilibrium quantity would fall.
D) Equilibrium quantity would rise, and equilibrium price would fall.

Question

Quizplus · Accepted Answer

An increase in demand would shift the demand curve to the right, leading to an increase in both equilibrium price and quantity. This is because there is now a higher willingness to pay for the good, and suppliers will respond by increasing the quantity supplied at a higher price.

Which of the Following Would Result from an Increase in the Demand