Question

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is:

• A. Supply and demand both increase equally
• B. Supply and demand both decrease equally
• C. Supply decreases and demand increases
• D. Supply increases and demand decreases

Answer 1

The correct option is C

Supply decreases and demand increases

If equilibrium price rises but equilibrium quantity remains unchanged, the cause is that the supply decreases and demand increases.