Increase in the demand for a good will cause the equilibrium price of the good to and the equil...........

General Studies (CHSL) Indian Economy

Increase in the demand for a good will cause the equilibrium price of the good to .............and the equilibrium quantity to ..............

increase; increase

decrease; decrease

increase; decrease

decrease; increase

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Explanation:

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. For any quantity, consumers now place a higher value on the good,and producers must have a higher price in order to supply the good; therefore, price will increase.