If the demand for a good increases, which of the following will generally occur in a market setting?

Question

Quizplus · Accepted Answer

When demand for a good increases, the market equilibrium price will increase, leading to an increase in the quantity supplied by producers in response to the higher price. Therefore, the quantity supplied will increase. The other options are unlikely to occur in a market setting, as the price of the good would not decrease if demand is increasing, the supply of the good would not necessarily increase, and producer profits would likely increase due to the higher demand for their product.

If the Demand for a Good Increases, Which of the Following