Which of the following will definitely result in an increase in the equilibrium price?
A)an increase in both demand and supply
B)a decrease in both demand and supply
C)an increase in demand combined with a decrease in supply
D)a decrease in demand combined with an increase in supply
E)an increase in supply combined with a decrease in demand

Question

Quizplus · Accepted Answer

An increase in demand combined with a decrease in supply will definitely result in an increase in the equilibrium price. This is because the increase in demand will cause an initial increase in the price, while the decrease in supply will further push up the price due to scarcity in the market.

Which of the Following Will Definitely Result in an Increase