An increase in demand shifts the demand curve to the right,increasing the equilibrium price.

Question

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When demand increases, there is now a higher quantity demanded at each price level. This leads to a shortage, and sellers can increase prices until they reach a new equilibrium where supply meets the higher level of demand. As a result, the equilibrium price increases, causing the demand curve to shift to the right.

An Increase in Demand Shifts the Demand Curve to the Right,increasing