An increase in the demand for bananas will the equilibrium price and _ _________ the equilibrium quantity of bananas.

Question

Quizplus · Accepted Answer

An increase in demand for bananas will lead to an increase in the equilibrium price and the equilibrium quantity of bananas. This is because the increase in demand will result in a shortage of bananas at the initial price, leading to an increase in price to reach a new equilibrium point where the quantity supplied meets the new, higher quantity demanded.

An Increase in the Demand for Bananas Will the Equilibrium