Question

when will an increase in demand imply an increase in price but no change in quantity? ​

Answer 1

A simultaneous and proportionate decrease in market supply with an increase in market demand will lead to price increase but no change in equilibrium quantity in the market.

Explanation:

As the market demand increases initially,the higher demand and constant supply would lead to an increase in both equilibrium price and quantity in the market.But if the market supply decreases proportionately as the market demand,the equilibrium quantity will decrease without any change in equilibrium price in the market.This indicates that subsequently,a decrease in market supply compensates for the initial increase in equilibrium quantity by restoring it to its original position with an increase in equilibrium price.