If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.

Question

Quizplus · Accepted Answer

When the demand for a product increases, the demand curve shifts to the right, causing an increase in both equilibrium price and equilibrium quantity. This is because at the initial equilibrium price, there is excess demand for the product, leading to upward pressure on prices. As prices increase, suppliers increase production, leading to an increase in equilibrium quantity as well.

If the Demand for a Product Increases and the Supply