An increase in both equilibrium price and quantity could be produced by a(n)
A) decrease in supply,with demand constant
B) increase in supply,with demand constant
C) decrease in demand,with supply constant
D) increase in demand,with supply constant
E) rise in resource prices

Question

Quizplus · Accepted Answer

An increase in demand while supply is constant will lead to an increase in both equilibrium price and quantity. This is because when demand increases, buyers will be willing to pay a higher price, leading to an increase in price. At the same time, sellers will respond to the higher price by producing and selling more, leading to an increase in quantity.

An Increase in Both Equilibrium Price and Quantity Could Be