question archive When firms in a market expect the price of their products to rise, the supply curve of their goods , causing the equilibrium price to
When firms in a market expect the price of their products to rise, the supply curve of their goods , causing the equilibrium price to
Subject:MarketingPrice:2.88 Bought3
When firms in a market expect the price of their products to rise, the supply curve of their goods , causing the equilibrium price to .
a) decreases; rise
b) decreases; fall
c) increases; fall
d) increases; rise
e) increases; rise and the equilibrium quantity to fall
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The correct answer is d) increases; rise.
The price will rise due to the increase in demand. The increased demand causes the demand curve to shift to the right and it now intersects the supply curve at a higher point. This means both the quantity and the price rise.
