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.

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Definitions:

Consumer Preferences

Describes the subjective tastes and preferences of individual consumers, influencing their purchasing decisions.

Marginal Benefit

The additional satisfaction or value a consumer gains from consuming one more unit of a good or service.

Purely Competitive

Describes a market structure where many small firms compete against each other, with no single entity able to control the market price.

Marginal Cost

The cost of producing one additional unit of a good, capturing how production costs change with the level of output.