Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A)An increase in demand and an increase in supply.
B)An increase in supply.
C)An increase in supply and an increase in demand greater than the increase in supply.
D)A decrease in demand and an increase in supply.

Question

Quizplus · Accepted Answer

An increase in demand greater than the increase in supply will push both the equilibrium price and quantity higher, as the demand shift has a stronger effect than the supply shift.

Which of the Following Would Cause an Increase in the Equilibrium