A simultaneous increase in demand and supply leads to an increase in price.

Name: A simultaneous increase in demand and supply leads to an increase in price.
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Question

Quizplus · Accepted Answer

A simultaneous increase in demand and supply generally leads to an ambiguous effect on price because while increased demand tends to push prices up, increased supply tends to lower them. The overall effect on price depends on the relative magnitudes of the demand and supply increases.

A Simultaneous Increase in Demand and Supply Leads to an Increase