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17 November, 10:04

An increase in demand causes an increase in the equilibrium price. The increase in equilibrium price will then cause an increase in supply. True or False

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  1. 17 November, 10:26
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    False

    Explanation:

    The increasein demand will increase both, the price and quantity.

    But will note have an impact in the supply curve. The equilibrium price will move along the same supply curve as beforethe increase in demand.

    As this is affected for input prices, technology, taxes and other factor
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