If the demand for pork increases while supply remains unchanged, the price tends to

If the demand for pork increases while supply remains unchanged, the price tends to

• A. Rise
• B. Fall
• C. Stay the same
• D. Cannot determine

Answer: (A)

When demand increases while supply stays the same, prices rise. If more people want pork at every price, the demand curve shifts right. At the current price, this creates a shortage because quantity demanded exceeds quantity supplied. Producers respond by raising the price, which reduces quantity demanded and leads to a new equilibrium where more is paid for pork. Since supply isn’t changing, the new equilibrium price is higher than before. So, the price tends to rise. It wouldn’t fall, stay the same, or be indeterminate in this situation.

When demand increases while supply stays the same, prices rise. If more people want pork at every price, the demand curve shifts right. At the current price, this creates a shortage because quantity demanded exceeds quantity supplied. Producers respond by raising the price, which reduces quantity demanded and leads to a new equilibrium where more is paid for pork. Since supply isn’t changing, the new equilibrium price is higher than before. So, the price tends to rise. It wouldn’t fall, stay the same, or be indeterminate in this situation.