If demand increases, ceteris paribus, market price will be ______ at the new equilibrium point.
A) higher
B) lower
C) the same
D) either higher or lower

Question

Quizplus · Accepted Answer

If demand increases while other factors remain constant, the demand curve shifts to the right. As a result of this shift, the equilibrium price and quantity both increase. Therefore, the market price will be higher at the new equilibrium point.

If Demand Increases, Ceteris Paribus, Market Price Will Be ______