Suppose there is an increase in demand in a market and no change in the supply. What will happen to the market equilibrium price
and quantity?
a.Equilibrium price will fall; equilibrium quantity will rise.
b.Equilibrium price will rise; equilibrium quantity will fall.
c.Equilibrium price will rise; equilibrium quantity will rise.
d.Equilibrium price will fall; equilibrium quantity will fall.
a.Equilibrium price will fall; equilibrium quantity will rise.
b.Equilibrium price will rise; equilibrium quantity will fall.
c.Equilibrium price will rise; equilibrium quantity will rise.
d.Equilibrium price will fall; equilibrium quantity will fall.
1 answer:
Answer:
c.Equilibrium price will rise; equilibrium quantity will rise.
Explanation:
If there's an increase in demand and supply remains unchanged. The demand curve would shift to the right and there would be an excess of demand over supply. Equilibrium price and quantity would increase.
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Accumulated Balance is given by :
Here,
n = time period = 30×12 = 360.
P = principal price = $250.
Putting all given values in above equation, we get :
Hence, this is the required solution.