Question

In one or two sentences, identify a change (either increase or decrease) in supply or demand that would cause the equilibrium price to increase.

Answer 1

An increase in demand and a decrease in supply will cause an increase in equilibrium price, but the effect on equilibrium quantity cannot be determined.

Step-by-step explanation:

An increase in supply is illustrated by a shift of the supply curve to the right. An increase in supply can be caused by: an increase in the number of producers. a decrease in the costs of production (such as higher prices for oil, labor, or other factors of production).

Answer 2

A supply curve is a graph that show the number of goods that a producer supply at a certain price at a given point in time. A decrease in supply will cause the equilibrium price to increase. When there is a decrease in supply, the price of the product in the market will increase and the equilibrium price will also increase.