Question

A demand shift in the market that increases demand will __________ the equilibrium price.

A.

freeze

B.

increase

C.

decrease

D.

remove




Please select the best answer from the choices provided



A

B

C

D

Answer 1

an increase in demand makes a decrease in equilibrium price

Step-by-step explanation:

becuase when demand increases the price per item to cover production decreases

Answer 2

Answer: B

An increase in demand will lead to an increase in the equilibrium price.

Step-by-step explanation:

A market is at equilibrium when, quantity of goods demanded and quantity of goods supplied are equal.

If there is an increase in the quantity of goods demanded, then demand becomes more than supply. This means that goods are being sold faster than they are being produced. This can lead to scarcity of goods and prices will increase.