An increase in demand will cause a(n)

Question

Quizplus · Accepted Answer

An increase in demand will lead to an increase in quantity supplied, as producers will be incentivized to supply more goods at the higher prices. This will not result in an immediate increase in supply, which is a change in the whole supply curve, rather than a movement along it. The equilibrium price may either increase or stay the same, depending on the extent of the increase in demand relative to the increase in quantity supplied.

An Increase in Demand Will Cause A(n)