Asked by Chase Boone on Sep 24, 2024
Verified
Suppose the demand for pens increases and the supply for pens decreases.What effect will it have on the equilibrium price for pens?
A) It will rise
B) It will fall
C) Uncertain
D) None
Equilibrium Price
the price at which the quantity of goods supplied equals the quantity of goods demanded, reaching a state of market balance.
Demand Increase
A situation where the desire and willingness to purchase a good or service grows, often resulting in higher prices.
Supply Decrease
A reduction in the quantity of a product or service that is available for sale.
- Gain knowledge about market equilibrium and the consequences of changes in supply and demand on the equilibrium price.
Verified Answer
KF
Katelyn Fairchildabout 1 hour ago
Final Answer :
A
Explanation :
An increase in demand and decrease in supply will lead to a shortage. As a result, the equilibrium price will rise due to the scarcity of pens, as consumers compete to purchase the limited supply available.
Learning Objectives
- Gain knowledge about market equilibrium and the consequences of changes in supply and demand on the equilibrium price.