If market demand increases and market supply decreases, the change in equilibrium price is
unpredictable without ﬁrst knowing the exact magnitudes of the demand and supply changes.

Question

Quizplus · Accepted Answer

When market demand increases and market supply decreases, the equilibrium price will increase. This is because the higher demand pushes prices up, and the lower supply reduces the quantity available, also contributing to higher prices.

If Market Demand Increases and Market Supply Decreases, the Change