Assume that the supply of computers increased, while at the same time the demand for computers increased. The net effect of these two changes would be a(n)
A) increase in the equilibrium price and an indeterminate effect on the equilibrium quantity
B) decrease in the equilibrium price and an indeterminate effect on the equilibrium quantity
C) indeterminate effect on the equilibrium price and an increase in the equilibrium quantity
D) indeterminate effect on the equilibrium price and a decrease in the equilibrium quantity

Question

Quizplus · Accepted Answer

When both supply and demand increase, the equilibrium quantity will definitely increase because more is being supplied and more is being demanded. However, the effect on price is indeterminate without knowing the relative magnitudes of the shifts in supply and demand.

Assume That the Supply of Computers Increased, While at the Same