If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)indeterminate; decrease
B)increase; increase
C)increase; indeterminate
D)decrease; decrease

Question

If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)​indeterminate; decrease
B)​increase; increase
C)​increase; indeterminate
D)​decrease; decrease

Quizplus · Accepted Answer

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

If Both Market Demand and Supply Increase Simultaneously, Then Equilibrium