If Both Demand and Supply Increase, What Will Be the Effect

question 163

Multiple Choice

If both demand and supply increase, what will be the effect on the equilibrium price and quantity?

• A) The price will fall but the quantity will increase.
• B) Both the price and the quantity will increase.
• C) The quantity will increase but the price could either rise, fall, or remain the same.
• D) The price will rise but the quantity could either increase, decrease, or remain the same.

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Definitions:

Blastula

An early stage of embryonic development in animals, characterized by a sphere of cells surrounding a central fluid-filled cavity.

Morula

Mass of 12 or more cells resulting from the early cleavage divisions of the zygote.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to, and removing waste from, the fetus.

Trophoblast

A layer of cells surrounding the blastocyst in early development that provides nutrients to the embryo and develops into part of the placenta.