If both the demand for a product and the supply of it increase, then the equilibrium quantity will ________ and the equilibrium price will ________.

Question

Quizplus · Accepted Answer

When both demand and supply increase, the equilibrium price will depend on the magnitude of the changes. If one of them increases more than the other, the equilibrium price can either increase, decrease, or remain constant. However, the equilibrium quantity will increase as both demand and supply increase. Therefore, D is the best choice.

If Both the Demand for a Product and the Supply