“An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.” Is this statement true or false?

“An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.” Is this statement true or false? Explain

Expert Solution

The statement is false because, an increase in the demand for notebooks raises the quantity of notebooks demanded and quantity supplied. This can be shown in the following figure;

In the above figure x-axis shows quantity and y -axis shows price. D is the demand curve S is the supply curve. E is the initial equilibrium point. An increase in the demand for notebooks raises, the demand curve shift to the right. ( D to D1). The price increases from p to p1 and quantity also increases from q to q1.(BOth quantity demanded and quantity supplied)

Rahul Sunny answered 1 year ago

An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.

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