Suppose there is an increase in both the supply and demand for laptops. Further, suppose the supply of laptops increases more than demand for laptops. In the market for laptops, we would expect

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Quizplus · Accepted Answer

If there is an increase in both demand and supply for laptops, but the supply of laptops increases more than demand, then we can expect the equilibrium price to fall and the equilibrium quantity to rise. The reason for this is that the increase in supply will push the price down while the increase in demand will push the price up. However, since the supply has increased more than demand, the overall effect will be a decrease in price. Meanwhile, the increase in supply and demand together will increase the equilibrium quantity. Therefore, the correct answer is D.

Suppose There Is an Increase in Both the Supply and Demand