Consider a market that is in equilibrium.If it experiences an increase in demand,what will happen? The demand curve will shift to the:

Question

Quizplus · Accepted Answer

An increase in demand will shift the demand curve to the right, leading to a new equilibrium point where both the equilibrium price and quantity will rise. This is because consumers are willing to pay a higher price for the same amount of quantity when there is an increase in demand. As a result, producers will increase their prices to match the increased demand, leading to higher prices and quantities being exchanged in the market. Therefore, choice A is the correct answer.

Consider a Market That Is in Equilibrium