When increase in demand equals increase in supply, equilibrium price will __________.

rise

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fall

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remain unchanged

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be zero

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Solution

The correct option is C remain unchanged
When the increase in supply is equal to increase in demand the equilibrium price will remain the dame at OP but the equilibrium Quantity will increase from Q1 to Q2.

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A decrease in demand and increase in supply causes the equilibrium price to __________.

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