NABTEB Economics 2023 Objective — Question 14
Question 14 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2023 Objective paper, with the correct answer and a full explanation.
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When the demand for a commodity increases while supply remains unchanged, the equilibrium price and quantity will A. remain constant B. decrease C. increase D. turn negative
- A. remain constant
- B. decrease
- C. increaseCorrect
- D. turn negative
Explanation
An increase in demand with supply unchanged creates excess demand at the old price, pushing equilibrium price and quantity upward.
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