Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

Name: Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
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Question

Quizplus · Accepted Answer

An increase in demand tends to raise the equilibrium price, while a decrease in supply also tends to raise the equilibrium price. Therefore, both changes will lead to an increase in the equilibrium price.

Suppose There Is a Simultaneous Increase in Demand and Decrease