QUESTION IMAGE
Question
if both the supply and demand curves shift to the right, what equilibrium change can we expect?
a decrease in the equilibrium price
an increase in the equilibrium quantity sold
a decrease in the equilibrium quantity sold
an increase in the equilibrium price
A rightward shift in the demand curve increases both equilibrium price and quantity. A rightward shift in the supply curve increases equilibrium quantity but decreases equilibrium price. The combined effect guarantees a rise in equilibrium quantity, while the price change is ambiguous (depends on the magnitude of the shifts).
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an increase in the equilibrium quantity sold