Question

if the market is in equilibrium, state the chain effects of increase in demand ?​

Answer 1

Answer:

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be detennined. 1. For any quantity, consumers now place a higher value on the good,and producers must have a higher price in order to supply the good; therefore, price will increase.

Answer 2

Answer:

Explanation:

The new equilibrium price is higher than the old one because demand increased.