Suppose There Is an Increase in Demand in a Market

question 25

Multiple Choice

Suppose there is an increase in demand in a market and no change in the supply. What will happen to the market equilibrium price and quantity?

• A) Equilibrium price will rise; equilibrium quantity will rise.
• B) Equilibrium price will rise; equilibrium quantity will fall.
• C) Equilibrium price will fall; equilibrium quantity will rise.
• D) Equilibrium price will fall; equilibrium quantity will fall.

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Definitions:

Conflict

A process that begins when one party perceives that another has negatively affected, or is about to negatively affect, something that the first party cares about.

Interdependence

A mutual reliance between two or more groups or individuals, where each party depends on the others for success or benefit.

Scarce Resources

Limited or insufficient resources, necessitating allocation and prioritization decisions.

Low Status

Occupying a position at the lower end of a hierarchy within a social or professional setting.