When both supply and demand shift to the right,equilibrium
A) price always rises.
B) price always falls.
C) quantity always falls.
D) quantity always rises.
E) quantity is indeterminate.

Question

Quizplus · Accepted Answer

When both supply and demand increase (shift to the right), the equilibrium quantity always rises because there is more being supplied and more being demanded. The effect on price is indeterminate without knowing the relative magnitudes of the shifts in supply and demand.

When Both Supply and Demand Shift to the Right,equilibrium