Everything else remaining unchanged, an increase in the supply of security A and an increase in the demand for security B causes the price of security A to_____ and the price of security B to_____ .

Question

Quizplus · Accepted Answer

An increase in supply of security A will lead to a fall in its price, while an increase in demand for security B will lead to a rise in its price. Thus, the price of security A will fall and the price of security B will rise, making option B the correct choice.

Everything Else Remaining Unchanged, an Increase in the Supply of Security