Holding supply constant,an increase in demand will
A)increase both the quantity and price.
B)increase the equilibrium price and decrease the equilibrium quantity.
C)decrease the equilibrium price and increase the equilibrium quantity.
D)decrease both the quantity and price.

Question

Quizplus · Accepted Answer

When demand increases while supply remains constant, both the equilibrium price and quantity will increase. This is because the higher demand pushes the price up as consumers are willing to pay more, and sellers are able to sell more at the higher price, thus increasing the quantity sold.

Holding Supply Constant,an Increase in Demand Will