If both the demand and supply increase, the equilibrium quantity

Question

Quizplus · Accepted Answer

When both demand and supply increase, there will be an increase in both the quantity demanded and the quantity supplied. As a result, the equilibrium quantity will increase, but the effect on the equilibrium price cannot be determined without additional information. It is possible that the increase in demand may be larger than the increase in supply, leading to an increase in the equilibrium price. Conversely, it is possible that the increase in supply may be larger than the increase in demand, leading to a decrease in the equilibrium price. Therefore, the effect on the equilibrium price is indeterminate.

If Both the Demand and Supply Increase, the Equilibrium Quantity