Which of the following definitely results in a product's equilibrium price rising?
A) an increase in both demand and supply
B) a decrease in both demand and supply
C) an increase in demand combined with a decrease in supply
D) a decrease in demand combined with an increase in supply
E) an increase in the supply combined with no change in the demand

Question

Quizplus · Accepted Answer

An increase in demand combined with a decrease in supply would lead to a shortage of the product, causing the equilibrium price to rise as suppliers raise their prices to capture additional profit.

Which of the Following Definitely Results in a Product's Equilibrium