Which of the following would cause an increase in the equilibrium price and an increase in the equilibrium quantity of watermelons?
A)an increase in demand and an increase in supply
B)an increase in supply
C)an increase in supply and an increase in demand greater than the increase in supply
D)a decrease in demand and an increase in supply

Question

Quizplus · Accepted Answer

An increase in demand greater than the increase in supply will lead to a higher equilibrium price and quantity, as the demand shift will dominate, pushing both price and quantity up.

Which of the Following Would Cause an Increase in the Equilibrium