Answer to Question #183163 in Microeconomics for Saman Khalil

Question

An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied. Is this statement true or false. Explain.

Answer 1

The claim is false. A rise in demand moves the demand curve to the right while the supply curve is stable. As a result, the equilibrium price rises and the market's equilibrium quantity traded rises. An upward trend along the supply curve is caused by an increase in the equilibrium price and quantity, implying an increase in the quantity supplied.