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What will be the effect upon equilibrium price when an increase in demand is greater than increase in supply? - Economics

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प्रश्न

What will be the effect upon equilibrium price when an increase in demand is greater than increase in supply?

विकल्प

  • Equilibrium price remains unchanged

  • Equilibrium price rises

  • Equilibrium price falls

  • None of these

MCQ
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उत्तर

Equilibrium price rises

Explanation:

When the increase in demand is greater than the increase in supply, the higher demand puts more upward pressure on price than the increased supply can offset. As a result, the equilibrium price rises, while the equilibrium quantity also increases.

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अध्याय 6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market - TEST YOURSELF QUESTIONS [पृष्ठ ११३]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 6 Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
TEST YOURSELF QUESTIONS | Q 8. | पृष्ठ ११३
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