What can cause both equilibrium price and quantity to increase?
A) an increase in the price of a complement good
B) a decrease in the population
C) consumer tastes becoming more favorable toward the good
D) an increase in the number of sellers

Question

Quizplus · Accepted Answer

When consumer tastes become more favorable toward a good, the demand for the good increases. If supply remains constant, this will cause an increase in both equilibrium price and quantity.

What Can Cause Both Equilibrium Price and Quantity to Increase