Question

If the number of consumers in the market for good A increases, what will happen to the equilibrium price and quantity of good A? a. Equilibrium price and quantity will both decrease b. Equilibrium price and quantity will both increase c. Equilibrium price will increase and equilibrium quantity will decrease d. Equilibrium price will decrease and equilibrium quantity will increase

Answer 1

Answer: b. Equilibrium price and quantity will both increase

Explanation:

Demand for a good comes from the consumers. So when number of consumers of a good increases, it will lead to an increase in the demand for the good. The demand curve will shift to the right. As a result the equilibrium price and quantity will both increase.

Thus, the correct option is b. b. Equilibrium price and quantity will both increase.