An increase in the equilibrium quantity of a product will result
A)when the quantity of the product supplied 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 an decrease in demand and a decrease in the cost of inputs used to make the product.

Question

Quizplus · Accepted Answer

An increase in the equilibrium quantity of a product occurs when there is an increase in both supply and demand for the product. This means that producers are willing and able to produce more of the product at a given price, while consumers are willing and able to purchase more of the product at that same price. This results in a shift of the demand and supply curves to the right, causing the equilibrium price to stay the same but the equilibrium quantity to increase.

An Increase in the Equilibrium Quantity of a Product Will