An increase in the demand for apples with no concurrent change in the supply of apples will result in a ________ equilibrium price and a(n)________ equilibrium quantity.
A) higher;lower
B) lower;lower
C) higher;unchanged
D) higher;higher
E) lower;higher

Question

Quizplus · Accepted Answer

An increase in demand with no change in supply leads to a situation where there are more buyers willing to buy apples at the same price. As a result, competition among buyers to obtain the limited quantity of apples available pushes the price up to a new equilibrium level. At this new equilibrium, both the price and quantity of apples are higher. Therefore, the correct choice is (D) higher equilibrium price and higher equilibrium quantity.

An Increase in the Demand for Apples with No Concurrent