If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase
A) both equilibrium quantity and equilibrium price in the long run.
B) equilibrium price, but equilibrium quantity will be unchanged in the long run.
C) equilibrium price but reduce equilibrium quantity in the long run.
D) equilibrium quantity, but equilibrium price will be unchanged in the long run.

Question

Quizplus · Accepted Answer

In the long run, under constant cost conditions, an increase in demand will lead to an increase in equilibrium quantity but no change in equilibrium price.

If a Product Is Manufactured Under Conditions of Constant Cost