Consider the market for a good that is initially in equilibrium.Which of the following is most likely to happen if supply increases by a smaller amount than the increase in demand?

Question

Quizplus · Accepted Answer

When both supply and demand increase, but demand increases by a larger amount than supply, the equilibrium price and quantity will both rise. The larger increase in demand pushes the price up, while the increase in supply, although smaller, contributes to a higher equilibrium quantity.

Consider the Market for a Good That Is Initially in Equilibrium.Which