Suppose that a recent celebrity endorsement made more people prefer this brand of cell phones. Now, more cell phones are demanded at each price level. As a result of the increase in demand, the equilibrium price _____ and the equilibrium quantity _____.

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Suppose that a recent celebrity endorsement made more people prefer this brand of cell phones. Now, more cell phones are demanded at each price level. As a result of the increase in demand, the equilibrium price increases and the equilibrium quantity increases. The equilibrium price is where the quantity of goods supplied is equal to goods that are demanded. If the equilibrium price rises, the demand is increasing for the product as well to compensate for the changes.

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