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If Both Demand and Supply Increase in a Market That

Question 55

Multiple Choice

If both demand and supply increase in a market that is initially in equilibrium, the equilibrium price will _____


A) remain unchanged while the equilibrium quantity will decrease.
B) remain unchanged while the equilibrium quantity will increase.
C) increase only if supply increases more than demand.
D) increase only if demand increases more than supply.
E) decrease only if supply increases less than demand.

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