If demand for a good increases, what typically happens to the price and quantity of that good?

When demand for a good increases, it indicates that consumers are willing to buy more of that good at every price level. This shift in demand typically leads to two main outcomes: an increase in the equilibrium price and an increase in the equilibrium quantity.

As demand rises, sellers recognize that they can charge higher prices due to the greater willingness of consumers to purchase the good. As a result, the price of the good increases. Simultaneously, the higher price incentivizes producers to supply more of the good to the market, which leads to an increase in quantity sold. Thus, both the price and quantity of the good will rise due to the heightened demand.

In summary, when demand increases, we can expect to see higher prices and greater quantities available in the market, confirming that an increase in demand leads to an increase in both price and quantity.