In order for resale price maintenance to increase the quantity of good sold, the shift in the market demand curve must be________ the shift in the market supply curve.

Question

Quizplus · Accepted Answer

For resale price maintenance to increase the quantity of goods sold, the shift in the market demand curve must be more than the shift in the market supply curve. This is because a greater increase in demand compared to supply is necessary to raise the equilibrium quantity in the market.

In Order for Resale Price Maintenance to Increase the Quantity