Suppose a market is in equilibrium. An increase in demand in this market, all other things remaining constant, will lead to a(n) _____

Question

Quizplus · Accepted Answer

An increase in demand will cause the quantity demanded to exceed the quantity supplied, leading to a shortage. To remove the shortage, suppliers will need to increase the amount they are willing to supply, leading to an increase in quantity supplied. This will result in a new equilibrium point, with a higher quantity and higher price than before. Thus, the correct answer is D.

Suppose a Market Is in Equilibrium