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

question 378

Multiple Choice

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

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

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns.

Employee Stock Ownership Plans (ESOPs)

An employee benefit plan giving workers ownership interest in the company, often aimed at improving company performance and employee satisfaction.

Funding Sources

Various origins of financial support for businesses or projects, including loans, investments, grants, and personal savings.

Future Earnings

Projected profits or income of a business or investment, anticipated in future periods based on past and current trends.