If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal.

Question

Quizplus · Accepted Answer

If demand increases, the equilibrium price will rise and the equilibrium quantity will also rise, everything else being equal. This is because at a higher price, suppliers are willing to produce more and consumers are willing to buy less, leading to a higher quantity traded.

If Demand Increases, the Equilibrium Price and Equilibrium Quantity Will