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- Draw a graph to illustrate the effect of an increase in demand on the price...

- Draw a graph to illustrate the effect of an increase in demand on the price and quantity in market

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Answer #1

When the demand increases for goods and services in the market, the quantity demanded also will increase ( Q0 to Q1 ) in the graph. When the demand increases for goods and services in the market, the price of the goods will also increase ( P0 to P1) as in the graph. When the demand increases for goods and services in the market, the supply will still remain the same.

Graph to illustrate the effect of an increase in demand on the price and quantity in the market :

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