Suppose that for a given good demand increases and supply increases at the same time.If demand increases by a lesser amount than supply increases,then equilibrium price __________ and equilibrium quantity __________ for that good.
A) rises; falls
B) falls; falls
C) rises; rises
D) falls; rises

Question

Quizplus · Accepted Answer

When both demand and supply increase, but supply increases by a larger amount than demand, the equilibrium price tends to fall due to the greater increase in supply compared to demand, and the equilibrium quantity rises because both demand and supply have increased.

Suppose That for a Given Good Demand Increases and Supply