Asked by
Shaikha Anwar
on Nov 17, 2024
Verified
Equilibrium price must increase when
A) both demand and supply increase.
B) both demand and supply decrease.
C) demand increases and supply does not change.
D) demand does not change and supply increases.
Equilibrium Price
The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, leading to market balance.
- Understand the notion of market equilibrium and the interaction between supply and demand in setting the equilibrium price and quantity.
Verified Answer
LB
Learning Objectives
- Understand the notion of market equilibrium and the interaction between supply and demand in setting the equilibrium price and quantity.