If both market demand and supply increase simultaneously by the same magnitudes, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)Not change; decrease
B)increase; increase
C)increase; not change
D)None of the above are correct

Question

If both market demand and supply increase simultaneously by the same magnitudes, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)​Not change; decrease
B)​increase; increase
C)​increase; not change
D)​None of the above are correct

Quizplus · Accepted Answer

When both market demand and supply increase simultaneously by the same magnitudes, there will be a new equilibrium point at a higher quantity and same price. The increase in demand will shift the demand curve to the right and the increase in supply will shift the supply curve to the right as well. The new equilibrium point will have a higher quantity and the price will remain the same.

If Both Market Demand and Supply Increase Simultaneously by the Same