Answer to Question #158283 in Microeconomics for yashika

Question

explain an increase in demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied?

Answer 1

A change in demand is a completely shift in demand curve either to the right when it is an increase in demand or left when it is a decrease in demand.

However, it should be noted that a change in demand with supply remaining unchanged will affect both the equilibrium price and quantity and this is what is referred to as the partial equilibrium analysis.

From the scenario above, an increase in demand for notebooks will shift the demand curve to the right and when the supply condition remain unchanged, then the equilibrium price will increase and the equilibrium quantity will also increase.