An increase in supply and demand at the same time will always result in a higher equilibrium market price.

Question

Quizplus · Accepted Answer

An increase in both supply and demand can lead to various outcomes for the equilibrium price depending on the magnitude of the shifts. If the increase in supply is larger than the increase in demand, the equilibrium price could actually decrease. If the increase in demand is larger, the price could increase. If they increase by the same amount, the price might stay the same but the quantity sold will increase.

An Increase in Supply and Demand at the Same Time