Equilibrium price must increase when demand
A)increases and supply does not change,when demand does not change and supply decreases,and when demand decreases and supply increases simultaneously.
B)increases and supply does not change,when demand does not change and supply decreases,and when demand increases and supply decreases simultaneously.
C)decreases and supply does not change,when demand does not change and supply increases,and when demand decreases and supply increases simultaneously.
D)decreases and supply does not change,when demand does not change and supply increases,and when demand increases and supply decreases simultaneously.

Question

Quizplus · Accepted Answer

According to the law of demand and supply, when demand increases (or stays constant) and supply decreases, the equilibrium price will increase. Therefore, option B is correct as it includes all the possible scenarios in which the equilibrium price will increase.

Equilibrium Price Must Increase When Demand