Suppose There Is a Simultaneous Increase in the Demand for Wheat

question 396

Multiple Choice

Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?

• A)Both the market clearing price and equilibrium quantity will rise.
• B)The market clearing price will fall, but the equilibrium quantity will rise.
• C)The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise.
• D)The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.

---

Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.