Question 1 Chapter 4 Problems and Applications 2 An increase

Question 1 Chapter 4, Problems and Applications #2. \"An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.\" Is this statement true or false? Explain.

Solution

False, As demand for notebooks raises then demand curve shifts rightward so that equilibrium quantity demanded rises, as well as quantity supplied by the firm, also rises due to increase in the price of the notebooks.