The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will
A)have no effect on either equilibrium price or quantity.
B)increase equilibrium price but not equilibrium quantity.
C)increase equilibrium quantity but not equilibrium price.
D)increase both equilibrium price and quantity.

Question

The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will
A)have no effect on either equilibrium price or quantity. 
B)increase equilibrium price but not equilibrium quantity. 
C)increase equilibrium quantity but not equilibrium price. 
D)increase both equilibrium price and quantity.

Quizplus · Accepted Answer

The Answer of  The diagram concerns supply adjustments to an increase in demand (D₁ to D₂)in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will
A)have no effect on either equilibrium price or quantity. 
B)increase equilibrium price but not equilibrium quantity. 
C)increase equilibrium quantity but not equilibrium price. 
D)increase both equilibrium price and quantity.

The Diagram Concerns Supply Adjustments to an Increase in Demand