Question

If

there will be a
higher equilibrium price
and quantity.
supply increases and demand decreases
• demand increases and supply stays the same
supply increases and demand stays the same
• supply increases and demand increases

Answer 1

Answer: supply increases and demand decreases

Step-by-step explanation:

When there's a higher equilibrium price, the producers will be willing to supply more goods to take advantage of the price rise. This will lead to an increase in supply of goods.

On the other hand, when is a higher equilibrium price, demand will reduce. Consumers will make less purchases. This follows the law of demand.