Which factor ALWAYS results in an increase in price and quantity?
A)an increase in supply and a decrease in demand
B)an increase in demand with no change in supply
C)an increase in supply with no change in demand
D)a decrease in demand and supply

Question

Quizplus · Accepted Answer

An increase in demand with no change in supply will always result in an increase in both price and quantity. This is because the higher demand will cause sellers to increase the quantity supplied at a higher price, leading to an equilibrium where both price and quantity are higher than before.

Which Factor ALWAYS Results in an Increase in Price and Quantity