If the supply and demand for a product both increase at the same time, the equilibrium price and equilibrium quantity of the product will both increase, ceteris paribus.

Question

Quizplus · Accepted Answer

While the equilibrium quantity will definitely increase, the effect on the equilibrium price is uncertain without knowing the relative magnitudes of the shifts in supply and demand. If the increase in demand is larger than the increase in supply, the price could increase. Conversely, if the increase in supply is larger than the increase in demand, the price could decrease.

If the Supply and Demand for a Product Both Increase