The supply curve slopes up and to the right.If the demand curve shifts upward to a new curve which is everywhere higher than the old curve (but possibly of different slope)and if the supply curve does not shift, then the equilibrium price and quantity must necessarily increase.

Question

Quizplus · Accepted Answer

If the demand curve shifts upward, it means that consumers are willing to pay a higher price for the same quantity of goods, which puts upward pressure on prices. As the supply curve is fixed, the market would have to adjust by increasing the equilibrium price to reach a new balance between supply and demand. This increase in price will also result in an increase in the quantity of goods sold, as producers are incentivized to produce more at the higher price. Therefore, the statement is true.

The Supply Curve Slopes Up and to the Right