Assume That Supply Increases Slightly and Demand Increases Greatly

question 129

Multiple Choice

Assume that supply increases slightly and demand increases greatly.What will happen to equilibrium price and quantity?  

• A) Equilibrium price will fall, and equilibrium quantity will rise. 
• B) Equilibrium price will rise, and equilibrium quantity will fall. 
• C) Equilibrium price will rise, and equilibrium quantity will rise. 
• D) Equilibrium price will fall, and equilibrium quantity will fall.

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