WAEC - Economics (2023 - No. 30)
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
increase
remain constant
decrease
turn negative
Explicació
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will increase. This is because the increase in demand will create a shortage at the current price. As a result, sellers will be able to raise prices, and the quantity traded will increase.
The equilibrium price will increase until the quantity demanded equals the quantity supplied. At this point, the market will be in equilibrium again.
The equilibrium price will increase until the quantity demanded equals the quantity supplied. At this point, the market will be in equilibrium again.