Answer to Question #274714 in Microeconomics for Shrishti gupta

Question

An increase in demand for notebook raises the quantity of notebooks demandes but not the quantity supplies is the 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.