Which of the following always results in an increase in equilibrium price and quantity?

Question

Quizplus · Accepted Answer

An increase in demand with no change in supply will always result in an increase in equilibrium price and quantity, as the increased demand will cause the price to rise and quantity demanded to increase. Option A can result in either an increase or decrease in equilibrium price and quantity depending on the magnitude of the shifts in supply and demand. Option C can result in either an increase or decrease in equilibrium price depending on the magnitude of the shifts in supply and demand, but will always result in a change in quantity. Therefore, option B is the only choice that always leads to an increase in both equilibrium price and quantity.

Which of the Following Always Results in an Increase in Equilibrium