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When Supply and Demand for a Product Increase Simultaneously, We

Question 42

Multiple Choice

When supply and demand for a product increase simultaneously, we


A) can predict that both the market clearing price and the equilibrium quantity will increase.
B) can predict that both the market clearing price and the equilibrium quantity will decrease.
C) cannot predict the market clearing price, but know that the equilibrium quantity will increase.
D) cannot predict the change in either the equilibrium quantity or the market clearing price.

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