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5 July, 00:27

How would an increase in demand affect the equilibrium price in a market? A. The equilibrium price decreases. B. The equilibrium price increases. C. The equilibrium price would remain the same. D. More information is needed. It may increase, decrease, or remain the same.

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  1. 5 July, 04:21
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    B) The equilibrium price increases.

    Explanation:

    According to the law of demand, if the quantity demanded of a good or service increases, the equilibrium price will also increase. Since more people are wiling to purchase a good or service and the quantity supplied remains the same, the price of that good will increase because a shortage will be generated.

    On the other hand, if the quantity demanded of a good or service decreases, the equilibrium price will decrease.
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