Question

If demand increases while supply decreases for a particulargood;

1. its equilibrium price will increase while quantity of the good produced and sold could increase, decrease or remain constant..

Is it true?

Answer 1

I don't think so. Check this site.

http://www.investorwords.com/1723/equilibrium_price.html

Answer 2

Your supply curve does not change.
Your demand curve moves higher in price and volume.
The new intersection will be at a higher price.
Unless your curves are very strange, it will also be at a higher volume.
Therefore I would say false.

Answer 3

No. Draw initial supply and demand curves. You are given that demand increases -- so shift the demand curve outward. You are given that supply decreases -- so shift the supply curve inward. The new equilibrium price must be higher than before. However the direction of the change in quantity is uncertain. So, I say true.