estaspxtestld 18411927 ECON102 ples of Micro Econo 54658 Mua

estaspxtestld 18411927 ECON-102 ples of Micro Econo 54658 Muain Ma Quiz: Quiz 2- Ch. 3,6 Time This This Question: 1 pt In the diagram to the right, when demand increases, an develops at the original prioe. price will not change rise fall

Solution

In the diagram to the right when demand increases shortage develops at the original price. Because the quantity demanded exceeds the quantity supplied

Equilibrium price will rise and equilibrium quantity will rise as a new equilibrium is established. Because the demand curve shifts to the right and the supply curve remains the same so equilibrium point shifts upward