Assume that supply increases slightly and demand increases greatly. Which of the following will happen?
a. equilibrium price will fall and equilibrium quantity will rise
b. equilibrium price will rise and equilibrium quantity will fall
c. equilibrium price will rise and equilibrium quantity will rise
d. equilibrium price will fall and equilibrium quantity will fall
e. neither equilibrium price nor equilibrium quantity will change
Question 2
Suppose demand increases and supply increases. Which of the following will happen?
a. equilibrium price will increase
b. equilibrium price will decrease
c. equilibrium quantity will increase
d. equilibrium quantity will decrease
e. neither the equilibrium price nor the equilibrium quantity will change
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