If we observe a rise in the equilibrium price of good A, we know that the demand for A has

Question

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If the equilibrium price of good A has risen, it means that there is now a shortage of A at the original price, which will cause buyers to bid up the price. Therefore, we know that demand has increased. On the other hand, if the supply of A has decreased, producers have fewer goods to sell and they will tend to raise prices. Thus, both increased demand and decreased supply could lead to a rise in the equilibrium price.

If We Observe a Rise in the Equilibrium Price of Good