Answer
Ans: The given statement is FALSE -- “An increase in the demand for notebooks raises the quantity of notebooks demanded but not the quantity supplied.”
Work Step by Step
Refer to the diagram attached.
Explanation -- As the demand for the commodity increases, the demand curve shifts to the rightward direction. Assuming supply remaining constant in the short run, the prices for the commodity will increase from P1 to P2. This increase will further give incentive to the suppliers to supply more (Law of Supply) which will result in the increase in the equilibrium quantity from Q1 to Q2. Hence, it is proved that an increase in demand for notebooks raises the quantity demanded for notebooks as well as quantity supplied of the same.
