Assuming competitive markets with typical supply and demand curves, which of the following statements is correct?

Question

Quizplus · Accepted Answer

When there is an increase in demand with no change in supply, the equilibrium price will increase, resulting in an increase in sales as consumers are willing to pay a higher price for the same quantity of goods. Option A is incorrect because a decrease in demand will lead to a decrease in equilibrium price. Option B is incorrect because an increase in supply with no change in demand will result in a decrease in equilibrium price. Option C is incorrect because an increase in supply with no change in demand will not necessarily result in a decline in sales.

Assuming Competitive Markets with Typical Supply and Demand Curves, Which