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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