If the demand for a final product rises, then this results in:

Question

Quizplus · Accepted Answer

An increase in demand for a final product typically leads to an increase in its price and quantity sold, which in turn increases the marginal revenue for the firm producing the product. Marginal revenue is the additional revenue that one more unit of the product will bring in, and it generally rises when demand increases because the firm can sell additional units at higher prices.

If the Demand for a Final Product Rises, Then This