An increase in demand will cause the equilibrium price and quantity to rise.

Question

Quizplus · Accepted Answer

An increase in demand means there is more desire for the product or service, which will cause the equilibrium price and quantity to rise. This is because consumers are willing to pay more for the increased demand, and suppliers will want to produce more to meet that demand. This results in an upward shift in both the demand and supply curves, with a new equilibrium point at a higher price and quantity.

An Increase in Demand Will Cause the Equilibrium Price and Quantity