When Supply and Demand for a Product Increase Simultaneously, We

question 42

Multiple Choice

When supply and demand for a product increase simultaneously, we

• A) can predict that both the market clearing price and the equilibrium quantity will increase.
• B) can predict that both the market clearing price and the equilibrium quantity will decrease.
• C) cannot predict the market clearing price, but know that the equilibrium quantity will increase.
• D) cannot predict the change in either the equilibrium quantity or the market clearing price.