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JAMB Economics 2011 Question 10

Question 10

Price Determination

If demand increases without a change in supply, equilibrium price and quantity will

  1. A.remain unchanged
  2. B.shift inward
  3. C.fall
  4. D.rise.
Show the answer and explanation

Answer: D (rise.)

Explanation

The demand curve shifts right along an unchanged supply curve, so both price and quantity rise.