Equilibrium quantity will always increase if:
A)supply and demand both increase.
B)supply increases and demand decreases.
C)supply and demand both decrease.
D)supply decreases and demand remains unchanged.

Question

Quizplus · Accepted Answer

When both supply and demand increase, the equilibrium quantity will increase because the market is able to satisfy the demand at a higher quantity and price. This can be seen graphically as the equilibrium point shifting to the right on the supply and demand curve.

Equilibrium Quantity Will Always Increase If