For a given upward-sloping supply curve,an increase in demand for chocolate chips will result in a:

A) higher equilibrium price and a lower equilibrium quantity.
B) lower equilibrium price and a lower equilibrium quantity.
C) lower equilibrium price and a higher equilibrium quantity.
D) higher equilibrium price and a higher equilibrium quantity.
E) decrease in the quantity supplied of chocolate chips.

Question

Nayeli Ortiz · Accepted Answer

Final Answer : D, Explanation :  An increase in demand will shift the demand curve to the right, causing both equilibrium price and quantity to increase. Since the supply curve is upward sloping, the new equilibrium point will have a higher price and quantity compared to the original equilibrium point.

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