For a given supply curve, an increase in demand will typically

Question

Quizplus · Accepted Answer

According to the law of supply and demand, an increase in demand with a fixed supply will lead to an increase in both quantity and price. This is because consumers will be willing to pay more for the limited quantity of the good or service available. As a result, the equilibrium price will increase and the equilibrium quantity demanded will also increase. Therefore, the best choice is E- increase both quantity and price.

For a Given Supply Curve, an Increase in Demand Will