If Both Demand and Supply Increase,then the Equilibrium Price

question 91

Multiple Choice

If both demand and supply increase,then the equilibrium price

• A)and equilibrium quantity increases.
• B)falls but the equilibrium quantity increases.
• C)could either rise or fall,but the equilibrium quantity increases.
• D)rises,and the equilibrium quantity could either increase or decrease.
• E)falls,and the equilibrium quantity could either increase or decrease.

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Definitions:

Split-off Point

The moment during a production process where multiple products become separately identifiable.

Joint Production Costs

The costs incurred in a production process that yields multiple products simultaneously up to the point of separation.

Processed Further

The additional processing or work done on a product after some initial manufacturing or production steps, often to add value or final features before sale.

Split-off Point

The split-off point is the stage in a production process where multiple products become separately identifiable, often leading to different processing routes.