A given increase in demand will raise the equilibrium quantity exchanged:
A)unless supply is perfectly inelastic.
B)more in the long run than in the short run.
C)in the market for normal goods.
D)all of the above

Question

A given increase in demand will raise the equilibrium quantity exchanged:
A)​unless supply is perfectly inelastic.
B)​more in the long run than in the short run.
C)​in the market for normal goods.
D)​all of the above

Quizplus · Accepted Answer

An increase in demand will raise the equilibrium quantity exchanged in all the given scenarios: unless supply is perfectly inelastic (since with perfectly inelastic supply, quantity does not change), more in the long run than in the short run (as markets adjust and supply can become more elastic over time), and in the market for normal goods (since demand for these goods increases with income).

A Given Increase in Demand Will Raise the Equilibrium Quantity