Question

21) An increase in demand for oil, along with a simultaneous increase in supply of oil, will

rev: 05_07_2018

Multiple Choice

• decrease price and increase quantity.

• increase price and decrease quantity.

• increase quantity, but whether it increases price depends on how much each curve shifts.

• increase price, but whether it increases quantity depends on how much each curve shifts.

Answer 1

Answer:

21) An increase in demand for oil, along with a simultaneous increase in supply of oil, will

increase quantity, but whether it increases price depends on how much each curve shift

- Increase in supply and demand will going to increase equilibrium quantity, but we can not exactly determine how much will be the increase in price until we have exact figure about increase in supply and demand