Asked by Adriana Davis on Jul 25, 2024
Verified
For a given upward-sloping supply curve,an increase in demand for chocolate chips will result in a:
A) higher equilibrium price and a lower equilibrium quantity.
B) lower equilibrium price and a lower equilibrium quantity.
C) lower equilibrium price and a higher equilibrium quantity.
D) higher equilibrium price and a higher equilibrium quantity.
E) decrease in the quantity supplied of chocolate chips.
Chocolate Chips
Small pieces of chocolate used as an ingredient in cookies, pancakes, and other baked goods.
Equilibrium Quantity
The quantity at which the amount of goods supplied is equal to the amount of goods demanded in the market.
- Absorb the concept of market stability and the forces that guide it towards equilibrium.
- Understand the effects of demand changes on market equilibrium.
Verified Answer
NO
Nayeli OrtizJul 26, 2024
Final Answer :
D
Explanation :
An increase in demand will shift the demand curve to the right, causing both equilibrium price and quantity to increase. Since the supply curve is upward sloping, the new equilibrium point will have a higher price and quantity compared to the original equilibrium point.
Learning Objectives
- Absorb the concept of market stability and the forces that guide it towards equilibrium.
- Understand the effects of demand changes on market equilibrium.
Related questions
Consider a Market for Cookies That Is Initially in Equilibrium ...
When a Surplus Arises in the Market for Swimwear ...
Suppose the Price of Compact Disks (CDs)increases,other Things Equal ...
Consider the Market for a Good That Is Initially in ...
Attempts Are Being Made to Develop a Biodegradable Plastic Using ...