Suppose Demand Increases and Supply Increases

question 38

Multiple Choice

Suppose demand increases and supply increases.Which of the following will happen?

• A)equilibrium price will increase
• B)equilibrium price will decrease
• C)equilibrium quantity will increase
• D)equilibrium quantity will decrease
• E)neither the equilibrium price nor the equilibrium quantity will change

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Definitions:

Economic Prosperity

A state of economic health and growth, typically characterized by high income levels and low unemployment.

Prices

Monetary value assigned to goods, services, or resources in the market, influenced by supply and demand dynamics.

Production Costs

The total expense incurred in the manufacture of a product, including materials, labor, and overhead.

Residual Reward

The reward or profit remaining after all the costs have been deducted.