question archive State true or false and justify your answer: An increase in demand with no change in supply will increase equilibrium price and reduce equilibrium quantity
State true or false and justify your answer: An increase in demand with no change in supply will increase equilibrium price and reduce equilibrium quantity
Subject:MarketingPrice:2.88 Bought3
State true or false and justify your answer:
An increase in demand with no change in supply will increase equilibrium price and reduce equilibrium quantity.
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Ans: False
Workings:
Equilibrium occurs at the point where the demand curve intersects the supply curve. When market demand increases, the demand curve shifts to the right.The effect of increase in demand with no change in supply will lead to increase equilibrium price and increase in equilibrium quantity.
Thus, the given statement is false.
