If the number of demanders for granite counter tops increases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is greater than the shift in supply, which of the following is true?

Question

Quizplus · Accepted Answer

When demand increases more significantly than supply decreases, the overall effect is an increase in both the equilibrium price and quantity. The increased demand pushes the price and quantity up, and although the decrease in supply tends to increase price further, it might not reduce quantity significantly if the demand increase is larger.

If the Number of Demanders for Granite Counter Tops Increases