If supply and demand both shift to the right, equilibrium quantity:
A) rises, but the equilibrium price may rise, fall, or stay the same.
B) falls, but the equilibrium price may rise, fall, or stay the same.
C) may rise, fall, or stay the same, but equilibrium price will rise.
D) may rise, fall, or stay the same, but equilibrium price will fall.

Question

Quizplus · Accepted Answer

When both supply and demand increase (shift to the right), the equilibrium quantity will definitely rise. However, the effect on equilibrium price is uncertain because it depends on the relative magnitudes of the shifts in supply and demand.

If Supply and Demand Both Shift to the Right, Equilibrium