Question

True or False: An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.

Answer 1

Answer:

The statement is False

Explanation:

Generally speaking, the statement is false considering the demand and supply curve. In this curve, when there is increase in demand, its implies that the consumers of the notebook still derived satisfaction on it and as such the producer of the notebook produces more and supply to the market will increase so that equilibrium point will be achieved. Until when law of diminishing return set in, and the people are not deriving satisfaction again, that is when the product may not be readily available.

Again if the supply curve is vertical, that is the producer is producing and supplying at fixed rate without putting into consideration the demands in the market, there will not be corresponding increase in supply with demands which can make statement to true.

Answer 2

Answer:

False

Explanation:

An increase in the demand for notebooks raises the quantity of notebooks demanded and also the quantity supplied

An increase in demand leads to a corresponding increase in supply

If the supply is not raised which will also increase the quantity of notebooks supplied, there will not be enough notebooks to meet the high demand for notebooks which brought about an increase in the quantity of notebooks demanded