Asked by Keely Mizenburg on May 06, 2024
Verified
When both supply and demand for a good increases,the change in equilibrium quantity is indeterminate.
Equilibrium Quantity
The quantity of goods or services supplied equals the quantity demanded at the market equilibrium price.
- Understand the fundamental concepts of supply and demand dynamics, including curve shifts resulting from external influences.
Verified Answer
DE
Devonte EdwardsMay 10, 2024
Final Answer :
False
Explanation :
When both supply and demand for a good increase, the equilibrium quantity will increase, although the change in equilibrium price is indeterminate without knowing the relative magnitudes of the shifts in supply and demand.
Learning Objectives
- Understand the fundamental concepts of supply and demand dynamics, including curve shifts resulting from external influences.