If demand increases, ceteris paribus, the quantity exchanged will be ______ at the new market equilibrium point.
A) larger
B) smaller
C) the same
D) either larger or smaller

Question

Quizplus · Accepted Answer

If demand increases, it means that consumers are willing to buy more at every given price, which results in a shift of the demand curve to the right. This creates a new market equilibrium point with a higher quantity of goods exchanged at a higher price. Therefore, the answer is A) larger.

If Demand Increases, Ceteris Paribus, the Quantity Exchanged Will Be