As the demand schedule for a given product shifts up and to the right, the short-run response to be expected is
A) an increase in price and a reduction in quantity sold.
B) an increase in both the price and the quantity sold.
C) a reduction in both the price and the quantity sold.
D) a reduction in price and an increase in the quantity sold.
E) any of the above depending on circumstance.

Question

Quizplus · Accepted Answer

When the demand schedule for a product shifts up and to the right, it indicates an increase in demand. In the short run, this typically leads to an increase in both the price and the quantity sold, as suppliers respond to higher demand by raising prices and increasing production to meet the demand.

As the Demand Schedule for a Given Product Shifts Up