Question

A demand shift in the market that increases demand will __________ the equilibrium price.

A.
freeze
B.
increase
C.
decrease
D.
remove

Answer 1

Answer is B. Increase

Answer 2

Option B, is the right answer.

Step-by-step explanation:

Option “B” Increase is the correct answer because the equilibrium price exists at the point where the demand and supply curve intersect each other. However, the increase in demand will shift the demand curve rightwards. Consequently, the demand and supply curve will intersect at a new intersection point which is higher than the previous one. Resulting, there will be an increase in equilibrium price.