If both the demand and supply increase, the equilibrium quantity ________ and the equilibrium price ________.

Question

Quizplus · Accepted Answer

When both demand and supply increase, the equilibrium quantity will definitely increase because more is being supplied and more is being demanded. However, the effect on equilibrium price is uncertain without knowing the relative magnitudes of the shifts in demand and supply; it might rise, fall, or not change depending on which effect is stronger.

If Both the Demand and Supply Increase, the Equilibrium Quantity