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

Question

Quizplus · Accepted Answer

When there is an increase in demand, the demand curve shifts to the right, causing a higher equilibrium price and quantity. This assumes that there are no other changes in the market conditions or external factors, which is why the phrase "ceteris paribus" (all other things being equal) is used in the statement.

An Increase in Demand Will Cause the Equilibrium Price and Quantity