Related to the Economics in Practice on p. 77: If the supply of generators increases and the demand for generators increases, the equilibrium price for generators ________ and the equilibrium quantity of generators ________.
A) will increase; will decrease
B) will increase; may increase, decrease, or stay the same
C) may increase, decrease, or stay the same; will increase
D) may increase; decrease, or stay the same; may increase, decrease, or stay the same

Question

Quizplus · Accepted Answer

When both supply and demand for a product increase, the equilibrium quantity will definitely increase because more of the product is being produced and more of it is wanted. However, the effect on price is uncertain without knowing the relative magnitudes of the changes in supply and demand.

Related to the Economics in Practice on P