what happened to the equilibrium price and equilibrium quantity in the market for toilet paper when demand increased, and supply remained constant?

Answer 1

When demand for toilet paper increases and supply remains constant, the equilibrium price in the market for toilet paper will increase, while the equilibrium quantity will also increase.

Demand increasing means that consumers are willing to buy more units of toilet paper at every price level. Since supply remains constant, there is no change in the quantity of toilet paper available to the market.

As a result, the increased demand will create a shortage in the market, as the quantity demanded exceeds the quantity supplied at the initial equilibrium price. In order to restore the equilibrium, suppliers will increase the price of toilet paper to ration the limited supply among the increased number of buyers. This price increase will incentivize consumers to reduce their quantity demanded, helping to match the quantity supplied.

The new equilibrium price will be higher than the initial equilibrium price, reflecting the increased demand. Additionally, the equilibrium quantity will also be higher due to the increased quantity demanded.