If both the supply and demand curves shift to the right, then we can conclude that there will be
A) an increase in the equilibrium quantity sold and an increase in the equilibrium price.
B) a decrease in the equilibrium quantity sold and a decrease in the equilibrium price.
C) an increase in the equilibrium quantity sold and a decrease in the equilibrium price.
D) an increase in the equilibrium quantity sold and an uncertain effect on the equilibrium price.

Question

Quizplus · Accepted Answer

When both supply and demand increase, the equilibrium quantity sold will definitely increase. However, the effect on equilibrium price is uncertain because it depends on the relative magnitudes of the shifts in supply and demand.

If Both the Supply and Demand Curves Shift to the Right