An Increase in Demand Causes A

Multiple Choice

An increase in demand causes a:

A) temporary shortage at the old equilibrium price and a higher new equilibrium price and quantity.
B) permanent shortage, leaving the equilibrium price and quantity unchanged.
C) temporary surplus at the old equilibrium price and a lower equilibrium price and quantity.
D) temporary shortage at the old equilibrium price, a higher new equilibrium price, and a lower new equilibrium quantity.