An increase in both supply and demand causes which of the following?
A) Equilibrium price falls.
B) Equilibrium price rises.
C) Equilibrium price change is indeterminate.
D) Equilibrium quantity decreases.
E) Equilibrium quantity change is indeterminate.

Question

Quizplus · Accepted Answer

When both supply and demand increase, the equilibrium quantity will definitely increase, but the change in equilibrium price is indeterminate because it depends on the relative magnitudes of the shifts in supply and demand.

An Increase in Both Supply and Demand Causes Which of the Following