Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, if the size of the shift of the demand curve is larger than the size of the shift of the supply curve, then the equilibrium quantity rises.

Question

Quizplus · Accepted Answer

When the demand for calendars increases, it shifts the demand curve to the right, indicating a higher quantity demanded at each price level. If the increase in demand is larger than the decrease in supply (due to the increased cost of ink, which shifts the supply curve to the left), the overall effect will be an increase in the equilibrium quantity, as the shift in demand outweighs the shift in supply.

Suppose the Demand for Calendars Increases in November