Answer to Question #173312 in Microeconomics for Jerry

Question

An increase in the demand for a good will tend

to cause

Answer 1

An increase in the demand for a good tends to increase the equilibrium price and quantity in the market as a result of the forced increase in the price of that same commodity. With supply having increased as a result of the price increase there's a need to ensure that there's a balance between the demand and the supply thereby creating a new equilibrium for the product.