Assume that both the demand curve and the supply curve for smart phones 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 smart phones will increase.
B)the equilibrium price of smart phones will increase; the equilibrium quantity may increase or decrease.
C)the equilibrium price of smart phones may increase or decrease; the equilibrium quantity will increase.
D)the equilibrium price of smart phones will decrease; the equilibrium quantity may increase or decrease.

Question

Quizplus · Accepted Answer

When both the demand and supply curves shift to the right, but the demand curve shifts more than the supply curve, it indicates an increase in both demand and supply with a stronger increase in demand. This leads to a higher equilibrium price because the increased demand raises the willingness to pay, and a higher equilibrium quantity because both supply and demand have increased.

Assume That Both the Demand Curve and the Supply Curve