Suppose there is an increase in both the supply and demand for personal computers. In the market for personal computers, we would expect?

A. the equilibrium quantity to rise and the equilibrium price to rise
B. the equilibrium quantity to rise and the equilibrium price to fall
C. the equilibrium quantity to rise and the equilibrium price to remain constant
D. the change in the equilibrium quantity to be ambiguous and the equilibrium price to rise
E. the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous.

Correct Answer: the equilibrium quantity to rise and the change in the equilibrium price to be ambiguous. ✔

Last Updated: June 18, 2019