An increase in both equilibrium price and quantity is a consequence of a(n):
A)increase in supply.
B)increase in demand.
C)decrease in demand
D)decrease in supply

Question

An increase in both equilibrium price and quantity is a consequence of a(n):
A)​increase in supply.
B)​increase in demand.
C)​decrease in demand
D)​decrease in supply

Quizplus · Accepted Answer

An increase in both equilibrium price and quantity is a consequence of an increase in demand, as it indicates an increase in both the willingness and ability of buyers to purchase goods or services at a higher price. An increase in supply would lead to an increase in quantity but a decrease in equilibrium price, while a decrease in demand or supply would lead to a decrease in both equilibrium price and quantity.

An Increase in Both Equilibrium Price and Quantity Is a Consequence