If both the supply and demand for personal computers increase simultaneously, what is the expected outcome in the personal computer market?

Show Answers

The equilibrium quantity will increase and the price will also increase.The equilibrium quantity will increase while the price decreases.The equilibrium quantity will increase and the price will stay the same.The change in equilibrium quantity is uncertain, but the price will increase.The equilibrium quantity will increase, but the direction of the price change is uncertain.

Explanation

When both supply and demand rise, the quantity exchanged in the market will definitely go up. However, since supply tends to lower prices and demand tends to raise them, the net effect on the equilibrium price is unclear without additional information.