The price of a good rises and so does the quantity sold. These observations are consistent with:

1

Elasticity
2
The price of a good rises and so does the
quantity sold. These observations are consistent
with

• An upward shift of the supply curve.
• A downward shift of the supply curve.
• An upward shift of the demand curve.
• A downward shift of the demand curve.

3
With upward sloping supply, if Demand Curve
shifts up, Price and Quantity both rise.
Price
Demand curve shifts up
New Equilibrium
Old Equilibrium
Quantity
4
If the supply curve shifts upwards, we expect

• Price and quantity both rise.
• Price rises, quantity falls.
• Price and quantity both fall.
• Price falls, quantity rises.

5
Here is the picture.
Price
Supply curve shifts up.
New equilibrium
Old equilibrium
Quantity
6
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7
If the demand for bananas is elastic and half
the banana crop is destroyed by a hurricane

• The price of bananas rises and total revenue
  falls.
• The price of bananas rises and total revenue
  rises.
• Price and quantity both fall.

8
If the demand for bananas is inelastic and the
size of the banana crop increases

• Total revenue of banana producers will rise.
• Total revenue of banana producers will fall.