When the demand for good A increases,
A)the equilibrium price and equilibrium quantity will increase.
B)the equilibrium price will rise,but the equilibrium quantity will decrease.
C)the equilibrium price and equilibrium quantity will decrease.
D)the equilibrium price will decrease,but the equilibrium quantity will increase.
E)a surplus will result.

Question

Quizplus · Accepted Answer

When the demand for good A increases, there will be more buyers willing to purchase the good at any given price. This will cause an upward shift in the demand curve, leading to a new equilibrium at a higher price and a higher quantity of the good being exchanged in the market. Therefore, both the equilibrium price and equilibrium quantity will increase.

When the Demand for Good a Increases