As a result of an increase in the number of demanders for your firm's product, you should anticipate a________ price for your product than the current equilibrium price and a ________equilibrium quantity than the current equilibrium quantity.

Question

Quizplus · Accepted Answer

An increase in the number of demanders for a product will result in an increase in demand. This will cause the demand curve to shift to the right. As a result, the equilibrium price will increase, since demanders are willing to pay more for the product. The equilibrium quantity will also increase, as there are more demanders for the product. Therefore, the correct answer is A.

As a Result of an Increase in the Number of Demanders