The equilibrium price will increase if the demand curve for a product shifts to the right and the supply curve for the product shifts to the left.

Question

Quizplus · Accepted Answer

When the demand curve for a product shifts to the right, it means consumers are willing to buy more of the product at a range of prices. This creates a shortage, which puts upward pressure on prices, leading to an increase in the equilibrium price. On the other hand, when the supply curve for a product shifts to the left, it means that producers are unable or unwilling to supply the same quantity of the product at a range of prices. This creates a scarcity, further driving up prices, resulting in an increase in the equilibrium price. Therefore, if both the demand and supply curves shift as described, the equilibrium price will increase.

The Equilibrium Price Will Increase If the Demand Curve for a Product