If consumers are willing to pay a higher price than previously for each level of output, we can say that there has occurred:

Question

Quizplus · Accepted Answer

An increase in consumer willingness to pay a higher price for each level of output means that there has been an increase in demand for the product. If supply remains the same, this will result in a higher equilibrium price and quantity. Therefore, the correct choice is an increase in demand.

If Consumers Are Willing to Pay a Higher Price Than