If both the supply and demand for personal computers increase, but the supply grows by a larger margin than demand, what is the expected outcome in the personal computer market?

Show Answers

The equilibrium quantity change is uncertain, and the price will decrease.Both the equilibrium quantity and price will increase.The equilibrium quantity will increase, but the price change is uncertain.The equilibrium quantity will increase while the price will decrease.The equilibrium quantity will increase, and the price will stay the same.

Explanation

When supply increases more than demand, the available quantity in the market rises, pushing the equilibrium quantity higher. However, the larger supply shift leads to a reduction in price, causing the equilibrium price to fall.