Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
A) Equilibrium price will fall and equilibrium quantity will rise.
B) Equilibrium price will rise and equilibrium quantity will fall.
C) Equilibrium price will rise and equilibrium quantity will rise.
D) Equilibrium price will fall and equilibrium quantity will fall.
E) Neither equilibrium price nor equilibrium quantity will change.

Question

Quizplus · Accepted Answer

When demand increases greatly and supply increases slightly, the equilibrium price and quantity both rise due to the stronger impact of increased demand.

Assume That Supply Increases Slightly and Demand Increases Greatly