If both the supply of and the demand for a good increase simultaneously, the equilibrium price will

Question

Quizplus · Accepted Answer

When both supply and demand increase simultaneously, the effect on equilibrium price is indeterminate without knowing the relative magnitudes of the changes in supply and demand. If the increase in demand is greater than the increase in supply, the price could increase. Conversely, if the increase in supply is greater than the increase in demand, the price could decrease.

If Both the Supply of and the Demand for a Good