Suppose both supply and demand increase.What effect will this have on the equilibrium price?

Question

Quizplus · Accepted Answer

When both supply and demand increase, it is not possible to predict the direction of equilibrium price change with certainty. It depends on the magnitude of the increase in supply and demand. If the increase in supply is greater than the increase in demand, the price will fall, and vice versa. If the increase in demand is equal to the increase in supply, the price will remain unchanged. Therefore, the equilibrium price may rise or fall, or it may remain the same.

Suppose Both Supply and Demand Increase