Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases
B
It remains the same
C
It increases
D
It fluctuates wildly
Understanding the Answer
Let's break down why this is correct
Answer
When demand increases while supply stays the same, the equilibrium price goes up. This is because more people want to buy the product, but there aren't more products available for sale. Imagine a popular toy that everyone wants for their birthday, but the store only has a limited number. Since many buyers are competing for those toys, the store can raise the price because more people are willing to pay for it. As a result, the higher demand leads to a higher equilibrium price in the market.
Detailed Explanation
When more people want a product, they are willing to pay more for it. Other options are incorrect because Some might think that more demand means lower prices; It's a common mistake to think prices stay the same.
Key Concepts
demand and supply curves
Topic
Graphing Economic Impacts
Difficulty
easy level question
Cognitive Level
understand
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