When demand increases, the equilibrium price _ and the equilibrium quantity _.

Name: When demand increases, the equilibrium price _ and the equilibrium quantity _.
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Question

Quizplus · Accepted Answer

When demand increases, there is more competition among buyers for the limited quantity of the good available, which causes the price to increase. As the price increases, suppliers are willing to produce and sell more of the good, which leads to an increase in the equilibrium quantity. Therefore, the correct answer is D: rises; increases.

When Demand Increases, the Equilibrium Price _ and the Equilibrium