Assuming competitive markets with typical supply and demand curves,which of the following statements is correct?

Question

Quizplus · Accepted Answer

In a competitive market, an increase in demand with no change in supply will result in an increase in the equilibrium quantity exchanged in the market. This is because the increase in demand creates upward pressure on price, leading producers to increase production until the quantity supplied equals the quantity demanded at the new higher price, resulting in an increase in the quantity exchanged. Choices A, B, C, and D are incorrect because they do not accurately describe the relationship between supply, demand, price, and quantity exchanged in a typical competitive market.

Assuming Competitive Markets with Typical Supply and Demand Curves,which of the Following