An increase in both the equilibrium price and quantity can be the result of
A) a decrease in demand.
B) an increase in supply.
C) a decrease in supply.
D) an increase in demand.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

An increase in demand will shift the demand curve to the right, resulting in a new equilibrium where both price and quantity are higher.

Answer: B and D
 An increase in supply and an increase in demand will both shift their respective curves to the right, resulting in a new equilibrium where both price and quantity are higher.

An Increase in Both the Equilibrium Price and Quantity Can