Demand increases by more than supply increases. The result is

a fall in price and a rise in quantityCorrect answerYour answera rise in price and a fall in quantityCorrect answerYour answerno change in eitherCorrect answerYour answera rise in both equilibrium price and quantityCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Both shifts raise quantity.
The larger demand shift pushes price up more than the supply shift pushes it down, so price rises.

Concept: Unequal shifts
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsWhen demand or supply shifts

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Ten questions from Market Equilibrium & Price Controls, at your own pace.

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Demand increases by more than supply increases. The result is

Explanation