If There Is an Increase in Both the Supply and Demand

question 2

Multiple Choice

If there is an increase in both the supply and demand for a good, which of the following will definitely occur?

• A) The price of the good will increase.
• B) The price of the good will decrease.
• C) The equilibrium quantity will increase.
• D) The equilibrium quantity will decrease.

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Definitions:

Tens Of

An expression suggesting an approximate quantity or range, often used in the context of counting or estimating.

Liens

Legal claims against assets that are typically used as collateral to secure loans.

Accounts Receivable

Amounts due from clients to a business for received goods or services that remain unpaid.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or production.