If Both Market Demand and Supply Increase Simultaneously, Then Equilibrium

question 160

Multiple Choice

If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.

• A)​indeterminate; decrease
• B)​increase; increase
• C)​increase; indeterminate
• D)​decrease; decrease

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Definitions:

Rational Government

The concept of a government acting based on reasoned decisions, typically aiming for the most economically efficient outcomes that maximize social welfare.

Satisfy Unlimited Wants

The economic principle that refers to the constant desire for goods and services exceeding the limited resources available to fulfill those desires.

Human Skills

The capabilities and expertise individuals possess that enable them to perform tasks, solve problems, and produce goods or offer services.

Capital

The buildings, equipment, and human skills used to produce goods and services.