An increase in both supply and demand will lead to an increase in the equilibrium price and an indeterminate change in the equilibrium quantity.

Question

Quizplus · Accepted Answer

An increase in both supply and demand generally leads to an indeterminate change in the equilibrium price because it depends on the magnitude of shifts in supply and demand, but it will definitely lead to an increase in the equilibrium quantity as both shifts suggest more quantity being available and demanded.

An Increase in Both Supply and Demand Will Lead to an Increase