What would a simultaneous increase in both the demand for and the supply of electric bicycles imply
A)Both the value of electric bicycles to consumers and the cost of producing electric bicycles have increased.
B)Both the value of electric bicycles to consumers and the cost of producing electric bicycles have decreased.
C)The value of electric bicycles to consumers has decreased and the cost of producing electric bicycles has increased.
D)The value of electric bicycles to consumers has increased and the cost of producing electric bicycles has decreased.

Question

Quizplus · Accepted Answer

When both the demand for and the supply of electric bicycles increase simultaneously, it implies that there is an equilibrium between the two. This equilibrium results in an increase in the value of electric bicycles to consumers and a decrease in the cost of producing electric bicycles. Therefore, both the demand and supply curves shift to the right, resulting in an increase in both price and quantity. This phenomenon is known as the market expansion.

What Would a Simultaneous Increase in Both the Demand for and the Supply