Answer to Question #308156 in Microeconomics for Usman ali

Question

Q-2. “An incr.ease 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

False.

An increase in demand of the notebooks causes a shift in the demand curve which brings an increase in the both equilibrium price and quantity. Therefore this causes an increase in quantity supplied.