If both demand and supply rise,which of the following must be true?

Question

Quizplus · Accepted Answer

When both demand and supply increase, the effect on the equilibrium price depends on the magnitude of the shifts in demand and supply. If demand increases more than supply, the price will increase. If supply increases more than demand, the price will decrease. If they increase by the same amount, the price might not change significantly. Therefore, without specific information on the relative magnitudes of the shifts, the change in the equilibrium price is indeterminate.

If Both Demand and Supply Rise,which of the Following Must