Consider a market that is in equilibrium. If the market experiences an increase in demand:
A) the equilibrium price and quantity will rise.
B) the equilibrium price will rise and the equilibrium quantity will fall.
C) the equilibrium price and quantity will fall.
D) the equilibrium price will fall and the equilibrium quantity will rise.

Question

Quizplus · Accepted Answer

An increase in demand will shift the demand curve to the right, causing the equilibrium price and quantity to both increase as the market adjusts to the new demand. Therefore, Choice A is the correct option.

Consider a Market That Is in Equilibrium