If the Demand for a Product Increases and the Supply

question 242

True/False

If the demand for a product increases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase.

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Definitions:

1960s

A decade marked by significant social, political, and cultural change worldwide, including movements for civil rights and against the Vietnam War in the United States.

Technological Progress

Innovations and improvements in technology that can lead to more efficient production methods and economic growth.

Factor of Production

Inputs used in the production of goods or services to make an economic profit, including land, labor, capital, and entrepreneurship.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.