If price rises,

Question

If price rises,

Quizplus · Accepted Answer

An increase in demand leads to a higher price as consumers are willing to pay more for the same quantity of goods, or demand more goods at the same price, shifting the demand curve to the right. This does not necessarily mean the equilibrium quantity decreases; it could increase or stay the same depending on the supply curve's shift. Increases in supply typically lower prices, and decreases in demand typically lower prices as well, making options B and C less likely. Option D is incorrect because a price rise does not inherently mean a decrease in equilibrium quantity; it depends on how supply and demand curves shift.

If Price Rises