An increase in the demand for corn is more than offset by an increase in its supply. As a result, the equilibrium price will
A) increase and the equilibrium quantity will decrease.
B) increase and the equilibrium quantity will increase.
C) decrease and the equilibrium quantity will decrease.
D) decrease and the equilibrium quantity will increase.

Question

Quizplus · Accepted Answer

When there is an increase in both demand and supply of a product, the equilibrium quantity will increase, but the equilibrium price will decrease. In this case, the increase in supply is more than the increase in demand, so the price will decrease even more. Therefore, the correct answer is D.

An Increase in the Demand for Corn Is More Than