Suppose a market with an upward-sloping supply curve were currently at equilibrium. A rightward shift of the demand curve would cause
A)an increase in price but a decrease in quantity.
B)a decrease in price but an increase in quantity.
C)an increase in both price and quantity.
D)a decrease in both price and quantity.

Question

Quizplus · Accepted Answer

When the demand curve shifts rightward, there will be an increase in both the price and quantity. This is because the upward-sloping supply curve intersects with the new demand curve at a higher price and higher quantity than the original equilibrium. As a result, both price and quantity increase.

Suppose a Market with an Upward-Sloping Supply Curve Were Currently