Asked by Patrick Garland on May 10, 2024
Verified
Equilibrium quantity will always increase if:
A) supply and demand both increase.
B) supply increases and demand decreases.
C) supply and demand both decrease.
D) supply decreases and demand remains unchanged.
Equilibrium Quantity
The quantity supplied and demanded at the equilibrium price, where the quantity that buyers are willing to buy is equal to the quantity sellers are willing to sell.
- Digest how supply and demand adjustments affect equilibrium price and quantity in economic terms.
- Appraise the market results following changes in supply and/or demand.
Verified Answer
WL
Wonder LungaMay 12, 2024
Final Answer :
A
Explanation :
When both supply and demand increase, the equilibrium quantity will increase because the market is able to satisfy the demand at a higher quantity and price. This can be seen graphically as the equilibrium point shifting to the right on the supply and demand curve.
Learning Objectives
- Digest how supply and demand adjustments affect equilibrium price and quantity in economic terms.
- Appraise the market results following changes in supply and/or demand.