What will happen if both the demand for and supply of a product increase simultaneously?

Question

Quizplus · Accepted Answer

When both the demand for and supply of a product increase simultaneously, the effect on price is indeterminate. It depends on the magnitude of the increase in both demand and supply. If the increase in demand is larger than the increase in supply, the price could increase. If the increase in supply is larger than the increase in demand, the price could decrease. If the increases are equal, the price may remain the same. Therefore, the effect on the price is uncertain. The effect on quantity traded is also indeterminate because it depends on the price change.

What Will Happen If Both the Demand for and Supply