If both the supply of and the demand for a good increase simultaneously, and if demand grows relatively less than supply, then price will

Question

Quizplus · Accepted Answer

If both supply and demand increase, but demand grows less than supply, it means there is an excess supply of the good. As a result, sellers will likely lower the price in order to sell the excess supply. This will lead to a fall in price and a rise in quantity.

If Both the Supply of and the Demand for a Good