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Consider a Market That Is in Equilibrium

Question 135

Multiple Choice

Consider a market that is in equilibrium.If it experiences both an increase in demand and an increase in supply,what can be said of the new equilibrium? The equilibrium:


A) price and quantity will both rise.
B) quantity will definitely rise, while the equilibrium price cannot be predicted.
C) price will definitely rise, while the equilibrium quantity cannot be predicted.
D) price and quantity will both fall.

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