Suppose There Is a Simultaneous Increase in the Demand for Wheat

Multiple Choice

Suppose there is a simultaneous increase in the demand for wheat and increase in the supply of wheat. Which of the following will occur as a result of these simultaneous events?

A) Both the market clearing price and equilibrium quantity will rise.
B) The market clearing price will fall, but the equilibrium quantity will rise.
C) The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise.
D) The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.