When there is an increase in both supply and demand,it is impossible to determine what happens to the equilibrium price unless the magnitudes of the supply and demand changes are known

Question

Quizplus · Accepted Answer

When there is an increase in both supply and demand, the equilibrium price can either increase, decrease, or stay the same depending on the magnitudes of the changes in supply and demand. Therefore, it is impossible to determine the direction of the change in equilibrium price without knowing the magnitudes.

When There Is an Increase in Both Supply and Demand,it