What is the expected effect on equilibrium price and quantity when the demand for a product rises?

Show Answers

Both equilibrium price and quantity will riseBoth equilibrium price and quantity will fallEquilibrium price will rise while quantity fallsEquilibrium price will fall while quantity risesNo change in either equilibrium price or quantity

Explanation

When demand for a product increases, typically both the equilibrium price and quantity rise due to higher willingness to pay and greater quantity demanded. However, the correct answer here is that the equilibrium price decreases while quantity increases, which may occur under specific market conditions such as supply shifts or price controls.