If the demand for a product increases and the supply of the same product decreases,the equilibrium price will increase.

Question

Quizplus · Accepted Answer

When demand increases, the equilibrium price will rise as consumers will be willing to pay more for the limited supply of the product. When supply decreases, there will be less of the product available, increasing competition among buyers and driving prices up. The combination of both of these factors will lead to an increase in the equilibrium price.

If the Demand for a Product Increases and the Supply