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- Subject
- Marketeconomics-mcqs › market
- Published
- 31 May 2019
- Last updated
- 28 May 2026
What is the typical effect on the market when there is an increase in demand?
Multiple choice question for Market. Select an option, then review the explanation below.
Explanation
When demand rises, it generally causes both the equilibrium price and the quantity produced to increase, as sellers respond to higher demand by supplying more at a higher price.
More Market MCQs
Practice related questions from the same subject.
- 1.Broadcasting firms use satellite TV subscriptions and signal detection tools primarily to combat which issue?
- 2.Which of the following is a classic example of a public good?
- 3.Which of the following factors can lead to market failure?
- 4.When a neighbor burns yard debris and smoke enters your home, what type of externality does this represent?
- 5.Why is a competitive equilibrium considered Pareto efficient?