An increase in demand and an increase in supply will ___________.

affect equilibrium quantity in an indeterminate way and price will decrease.

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affect price in an indeterminate way and quantity will decrease.

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affect price in an indeterminate way and quantity will increase.

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affect equilibrium quantity in an indeterminate way and price will increase.

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Solution

The correct option is D affect price in an indeterminate way and quantity will increase.
When there is equal increase in supply and demand that is the shift of demand to the right from DD to D1D1 Is equal to the shift of supply curve from SS to S1S1 is equal. There is no change in the equilibrium price of the commodity but the equilibrium quantity will increase.

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