[amp_mcq option1=”Supply and demand both increase equally” option2=”Supply and demand both decrease equally” option3=”Supply decreases and demand increases” option4=”Supply increases and demand decreases” correct=”option3″]<\/p>\n
The correct answer is: C. Supply decreases and demand increases.<\/strong><\/p>\n When equilibrium price rises but equilibrium quantity remains unchanged, it means that the demand for the good has increased more than the supply has decreased. This can happen for a number of reasons, such as:<\/p>\n In contrast, if the supply of a good decreases, the equilibrium price will increase but the equilibrium quantity will decrease. This is because the higher price will discourage some consumers from buying the good, while the lower quantity will encourage some producers to produce more of the good.<\/p>\n Therefore, the only option that can explain a situation where the equilibrium price rises but the equilibrium quantity remains unchanged is option C: Supply decreases and demand increases.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”Supply and demand both increase equally” option2=”Supply and demand both decrease equally” option3=”Supply decreases and demand increases” option4=”Supply increases and demand decreases” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-47006","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n\n