An increase in the demand for a good will cause
A) an increase in equilibrium price and quantity.
B) a decrease in equilibrium price and quantity.
C) an increase in equilibrium price and a decrease in equilibrium quantity.
D) a decrease in equilibrium price and an increase in equilibrium quantity.

Question

Quizplus · Accepted Answer

When demand for a good increases, it shifts the demand curve to the right, leading to a higher equilibrium price and quantity as suppliers respond to increased demand by raising prices and increasing production.

An Increase in the Demand for a Good Will Cause