If the demand for a good increases by more than the supply of the good increases,then the good's equilibrium price will __________ and its equilibrium quantity will __________.
A) rise; fall
B) rise; rise
C) fall; fall
D) fall; rise

Question

Quizplus · Accepted Answer

When demand increases more than supply, the equilibrium price will rise due to higher demand. The equilibrium quantity will also rise because, despite the increase in supply not matching the demand increase, it still represents a growth in the amount of goods available and sold.

If the Demand for a Good Increases by More Than