Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price.

Question

​Either an increase in demand with the supply curve held constant or a decrease in supply with the demand curve held constant will raise a market's equilibrium price.

Quizplus · Accepted Answer

This is a basic principle of supply and demand - if demand increases or supply decreases, there will be less of the good available in the market, so the price will rise until a new equilibrium is reached.

​Either an Increase in Demand with the Supply Curve Held

Either an Increase in Demand with the Supply Curve Held