Consider a market that is in equilibrium.If it experiences an increase in demand,what will happen?

Question

Quizplus · Accepted Answer

An increase in demand will shift the demand curve to the right, creating a situation where the quantity demanded exceeds the quantity supplied at the original price. This will result in upward pressure on the price, causing it to rise until a new equilibrium is reached where the quantity supplied equals the new quantity demanded at a higher price. Thus, both the equilibrium price and quantity will increase.

Consider a Market That Is in Equilibrium