Final answer:
The equilibrium price and quantity are affected by changes in demand and supply. An increase in demand or a decrease in supply results in a higher equilibrium price, whereas an increase in supply or a decrease in demand leads to a lower equilibrium price. Quantity sold moves in the same direction as the factor that is increasing and opposite to the factor that is decreasing.
Step-by-step explanation:
Identifying the impact on equilibrium price and quantity for each scenario:
- a. Demand rises and supply is constant: The equilibrium price will increase and the quantity sold will increase as well.
- b. Demand falls and supply is constant: The equilibrium price will decrease and the quantity sold will decrease.
- c. Supply rises and demand is constant: The equilibrium price will decrease and the equilibrium quantity will increase.
- d. Supply falls and demand is constant: The equilibrium price will increase and the equilibrium quantity will decrease.
In summary, an increase in demand with a constant supply leads to higher prices and quantities, whereas a decrease in demand results in lower prices and quantities. Conversely, an increase in supply with constant demand reduces prices but increases quantities, while a decrease in supply raises prices and reduces quantities.