41 If the demand for a product increases, we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity both to increase. d. equilibrium price and equilibrium quantity both to decrease. C If the supply of a product decreases, we would expect

Question

Gerardo Mata

Business

9 March, 10:27

41 If the demand for a product increases, we would expect a. equilibrium price to increase and equilibrium quantity to decrease. b. equilibrium price to decrease and equilibrium quantity to increase. c. equilibrium price and equilibrium quantity both to increase. d. equilibrium price and equilibrium quantity both to decrease. C If the supply of a product decreases, we would expect

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Giovanni Cortez · Answer 1

c. equilibrium price and equilibrium quantity both to increase

Explanation:

If demand for a good increases, the equilibrium price will increase too, because consumers will be willing to purchase the good at higher prices. Besides, suppliers will try to take advantage of this situation by producing more of the same good, increasing the equilibrium quantity as well.