if demand increases while supply remains unchanged, the equilibrium price of the product will ______ and the…
if demand increases while supply remains unchanged, the equilibrium price of the product will ______ and the equilibrium quantity will ______. \na. increase, decrease\nb. decrease, decrease\nc. decrease, increase\nd. increase, increase
Answer
Brief Explanations:
When demand increases and supply is constant, the demand - curve shifts to the right. At the initial equilibrium price, there is now a shortage. Producers will raise the price and increase the quantity supplied. As a result, both the equilibrium price and quantity will increase.
Answer:
D. increase, increase