Assume that both the demand curve and the supply curve for MP3 players shift to the right but the demand curve shifts more than the supply curve.As a result
A)both the equilibrium price and quantity of MP3 players will increase.
B)the equilibrium price of MP3 players will increase; the equilibrium quantity may increase or decrease.
C)the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will increase.
D)the equilibrium price of MP3 players will decrease; the equilibrium quantity may increase or decrease.

Question

Quizplus · Accepted Answer

When both the demand curve and the supply curve shift to the right, the equilibrium price and quantity will both increase. This is because the increase in demand will lead to a higher equilibrium price, and the increase in supply will lead to a higher equilibrium quantity.

Assume That Both the Demand Curve and the Supply Curve