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.

---

Definitions:

Economy

A system by which goods and services are produced, distributed, and consumed within a society or geographical area.

Phillips Curve

An economic theory that suggests an inverse relationship between the rate of inflation and the rate of unemployment within an economy.

Government Policy

The actions, laws, or regulations established by governments to guide economic, social, and administrative issues.

Money Supply

The total financial resources available within an economy at a given time frame.