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Solved: Which of the following is certainly true if demand and supply increase at the
Chapter 0, Problem 5(choose chapter or problem)
Which of the following is certainly true if demand and supply increase at the same time? a. The equilibrium price will increase. b. The equilibrium price will decrease. c. The equilibrium quantity will increase. d. The equilibrium quantity will decrease. e. The equilibrium quantity may increase, decrease, or stay the same.
Questions & Answers
QUESTION:
Which of the following is certainly true if demand and supply increase at the same time? a. The equilibrium price will increase. b. The equilibrium price will decrease. c. The equilibrium quantity will increase. d. The equilibrium quantity will decrease. e. The equilibrium quantity may increase, decrease, or stay the same.
ANSWER:Step 1 of 3
Supply and demand are market forces that interact with each other to give market equilibrium. At that point, the amount is given by equilibrium quantity at the market-clearing equilibrium price. The shift in market equilibrium will result in a change in equilibrium price and quantity.