An increase in demand, with supply unchanged, generally lowers both equilibrium price and equilibrium quantity.

### Why this is right An increase in demand generally raises both equilibrium price and equilibrium quantity when supply is unchanged. Buyers want more at each price, producing upward pressure on price and encouraging a larger market quantity. ### The concept A demand increase shifts the demand curve right. This differs from an increase in supply, which tends to lower equilibrium price while raising equilibrium quantity. ### The other options - **True**: this is tempting because changes in supply can lower price, but it is incorrect for an increase in demand. A demand increase raises rather than lowers equilibrium price under the stated condition. ### Remember A rightward demand shift raises price and quantity; a rightward supply shift lowers price and raises quantity.