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

Question

Quizplus · Accepted Answer

The equilibrium price could either rise, fall, or remain the same based on the relative magnitude of the increase in supply and demand. If the increase in supply is greater than the increase in demand, the equilibrium price will fall. If the increase in demand is greater than the increase in supply, the equilibrium price will rise. If both increases are exactly equal, the equilibrium price will remain the same.

Suppose Both Supply and Demand Increase