If resale price maintenance leads to a shift in the market demand that exceeds the shift in the market supply, the quantity of the good sold will _________ and the manufacturer's profit will ________.

Question

Quizplus · Accepted Answer

When resale price maintenance leads to a shift in market demand that exceeds the shift in market supply, it means that more consumers are willing to buy the product at a higher price, increasing the quantity sold. This increase in sales volume typically leads to an increase in the manufacturer's profit, as they are able to sell more units at a higher price.

If Resale Price Maintenance Leads to a Shift in the Market