Answer to Question #94910 in Microeconomics for Sealtiel Angelu Tolosa

Question

an increase in demand during the start of an academic year for school bag raises the quantity of school bags demanded but not the quantity supplied

Answer 1

Rise of demand for school bags at the start of school year shifts the demand curve to the right and new equilibrium price is higher than befor that. It is more profitable for suppliers to sell the same quantity but for a higher price and get higher profit.