When the demand for a commodity increases while supply re...
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will
Increase
Remain constant
Decrease
Turn negative
Correct answer is A
When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will increase. This is because the increase in demand will create a shortage at the current price. As a result, sellers will be able to raise prices, and the quantity traded will increase.
The equilibrium price will increase until the quantity demanded equals the quantity supplied. At this point, the market will be in equilibrium again.
The long-run is a period during which a firm ...
GNP is not a good measure of social welfare because there are unrecorded ...
Institutions serving as links between surplus and deficit units can be identified as ...
Which of the following is not a component of national income at factor cost? ...
Which of the following is a disadvantage of sole proprietorship? ...
Which of the following is not an asset of a commercial bank? ...
Given that Q d = 20 - 4P and Q = 6P + 12 Determine the equilibrium quantity ...
By balance of visible trade we mean? ...
A commercial bank is unique in that it is the only institution that ...