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STALIN [3.7K]
3 years ago
6

How would an increase in demand affect the equilibrium price in a​ market? A. The equilibrium price decreases. B. The equilibriu

m price increases. C. The equilibrium price would remain the same. D. More information is needed. It may​ increase, decrease, or remain the same.
Business
1 answer:
fomenos3 years ago
7 0

Answer:

B) The equilibrium price increases.

Explanation:

According to the law of demand, if the quantity demanded of a good or service increases, the equilibrium price will also increase. Since more people are wiling to purchase a good or service and the quantity supplied remains the same, the price of that good will increase because a shortage will be generated.

On the other hand, if the quantity demanded of a good or service decreases, the equilibrium price will decrease.

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~Hello there! ^_^

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Hope this helps~




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