Answer in Microeconomics for Jerry #173312
March 27th, 2023
An increase in the demand for a good will tend
to cause
An increase in the demand for a good tends to increase the equilibrium price and quantity in the market as a result of the forced increase in the price of that same commodity. With supply having increased as a result of the price increase there’s a need to ensure that there’s a balance between the demand and the supply thereby creating a new equilibrium for the product.