An increase in demand while the supply remains unchanged causes equilibrium price and quantity to increase.
If demand increases and supply does not change, shortages will occur and equilibrium prices will rise. If demand falls and supply does not change, there will be a surplus, and equilibrium prices will fall. If demand does not change and supply increases, the surplus will occur and the equilibrium price will fall.
An increase in demand and a decrease in supply will increase the equilibrium price, but the impact on the equilibrium amount cannot be determined. 1.1. For each quantity, consumers will appreciate the goods and producers will have to have higher prices to supply the goods. Therefore, the price will go up.
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