Which of the following always results in an increase in price and quantity?

Question

Quizplus · Accepted Answer

An increase in demand with no change in supply will always result in an increase in both price and quantity because there is a higher demand for the same amount of supply. This creates a shortage, forcing the price to increase, and the suppliers to produce more, which increases the quantity. Option A is incorrect because a decrease in demand will result in a decrease in both price and quantity. Option C is incorrect because an increase in supply with no change in demand may result in a decrease in price and an increase in quantity. Option D is incorrect because only option B satisfies the condition of always resulting in an increase in price and quantity.

Which of the Following Always Results in an Increase in Price