An Increase in Both Supply and Demand Causes Which of the Following

question 85

Multiple Choice

An increase in both supply and demand causes which of the following?

• A) Equilibrium price falls.
• B) Equilibrium price rises.
• C) Equilibrium price change is indeterminate.
• D) Equilibrium quantity change is indeterminate.

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Definitions:

Past Data Points

Historical information or measurements that are used for analysis or to predict future trends.

Exponential Smoothing

A time series forecasting method for univariate data that applies decreasing weights to past observations.

Actual Demand

The real or observed demand for products or services in a market, as opposed to forecasted or theoretical demand.

Weighted Moving Average

A forecasting method that assigns different weights to historical data points, prioritizing more recent data in the calculation.