Question

An increase in the demand for notebooks raises the quantity of notebooks demanded, but not the quantity supplied

Answer 1

When the supply curve is constant, an increase in demand shifts the demand curve to the right. As a result, the equilibrium price increases and the equilibrium quantity traded in the market increases. The increase in the equilibrium price and the increase in the equilibrium quantity causes an upward movement along the supply curve, indicating an increase in the quantity supplied.

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Answer 2

The claim is false. A rise in demand moves the demand curve to the right while the supply curve is stable. As a result, the equilibrium price rises and the market's equilibrium quantity traded rises. An upward trend along the supply curve is caused by an increase in the equilibrium price and quantity, implying an increase in the quantity supplied.

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