If Demand Increases, the Equilibrium Price and Equilibrium Quantity Will

question 67

True/False

If demand increases, the equilibrium price and equilibrium quantity will both fall, everything else being equal.

---

Definitions:

Polluting Good

A product or service that when produced or used, negatively impacts the environment by releasing harmful substances.

Optimal Amount

The most favorable level of a certain variable, considering conditions that maximize efficiency or outcomes.

External Benefits

Advantages or positive effects that a transaction or activity provides to people not directly involved in it.

Market Price

The current price at which an asset or service can be bought or sold in a specific market.