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What Is the Effect on the Price and Quantity of a Product

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What is the effect on the price and quantity of a product if both the demand and supply simultaneously increase?


Definitions:

Production Costs

The total expenses incurred in the process of creating goods or services, comprising direct materials, direct labor, and overheads.

Competitive Industries

Industries characterized by a high degree of competition where no single firm or entity controls a significant portion of the market.

Total Benefits

The complete gains or advantages, in terms of money, comfort, or welfare, obtained from a particular action or investment.

Market Equilibrium

A condition in which the quantity of goods supplied is equal to the quantity demanded, often resulting in an optimal price for products or services.

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