An increase in the equilibrium quantity of a product will result
A) when the quantity supplied of the product exceeds the quantity demanded.
B) when there is an increase in supply and an increase in demand for the product.
C) when there is an increase in supply and a decrease in demand for the product.
D) when there is a decrease in demand and a decrease in the cost of inputs used to make the product.

Question

Quizplus · Accepted Answer

An increase in equilibrium quantity occurs when there is an increase in both supply and demand for the product. This results in a new equilibrium point with a higher quantity and potentially a higher price. If the quantity supplied exceeds the quantity demanded, it would lead to a surplus and a decrease in price, not an increase in quantity. A decrease in demand and a decrease in the cost of inputs used to make the product may lead to a decrease in equilibrium quantity.

An Increase in the Equilibrium Quantity of a Product Will