Practice mode Market

Both the supply of and demand for personal computers increase, but supply rises by more than demand. What should we expect in the market for personal computers?

Correct answer D. The equilibrium quantity to rise and the equilibrium price to fall

Explanation

Both shifts raise quantity, so equilibrium quantity rises. Because the supply increase outweighs the demand increase, downward pressure on price dominates and the equilibrium price falls.

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Both the supply of and demand for personal computers increase, but supply rises by more than demand. What should we expect in the market for personal computers?

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Both the supply of and demand for personal computers increase, but supply rises by more than demand. What should we expect in the market for personal computers?

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