If the demand for high definition televisions increases and the supply of high definition televisions increases,then
A) it is clear that prices will increase; the change in the quantity of televisions sold is ambiguous.
B) it is clear that prices will decrease; the change in the quantity of televisions sold is ambiguous.
C) it is clear that quantity sold will increase; the change in the price of televisions is ambiguous.
D) it is clear that quantity sold will decrease; the change in the price of televisions is ambiguous.

Question

Quizplus · Accepted Answer

An increase in both demand and supply for high definition televisions will lead to an increase in the quantity sold since there are more TVs available to be bought and more consumers want them. However, the price of these televisions can either increase or decrease since the change in supply and demand magnitude is not specified.

If the Demand for High Definition Televisions Increases and the Supply