Suppose There Is a Simultaneous Increase in Demand and Increase

question 366

Multiple Choice

Suppose there is a simultaneous increase in demand and increase in supply. Given this information, we know with certainty that

• A) both the equilibrium price and the equilibrium quantity will increase.
• B) the equilibrium price will increase, and the equilibrium quantity will increase.
• C) the equilibrium quantity will increase.
• D) the equilibrium price will increase.

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Definitions:

Variable

A feature or characteristic that can vary among individuals or over time.

Characteristic

A feature or quality belonging typically to an individual, group, or situation, often used to define or distinguish.

Elements

Fundamental components or parts in a set or system.

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed over a specific period of time.