Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 4 - Part II - The Market Forces of Supply and Demand - Problems and Applications: 2

Answer

The statement " An increase in the demand for notebooks raises and the quantity of notebooks demanded, but not the quantity supplied" is False

Work Step by Step

The increase in demand for notebooks results in an increased quantity supplied. Therefore, an increase in demand is going to be most of the times followed by an increase in quantity supplied. The only way the statement would be true is if the supply curve was a vertical line.
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