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Suppose There Is an Increase in Both the Supply and Demand

Question 45

Multiple Choice

Suppose there is an increase in both the supply and demand for personal computers. Further, suppose the supply of personal computers increases more than demand for personal computers. In the market for personal computers, we would expect


A) the change in the equilibrium quantity to be ambiguous and the equilibrium price to fall.
B) the equilibrium quantity to rise and the equilibrium price to rise.
C) the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.
D) the equilibrium quantity to rise and the equilibrium price to fall.
E) the equilibrium quantity to rise and the equilibrium price to remain constant.

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