When the supply curve shifts out to the right and the demand curve shifts out to the right the equilibrium quantity will?

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1106661

2026-03-26 18:11

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When both the supply curve and demand curve shift to the right, the equilibrium quantity will definitely increase, as more goods are available and more are desired by consumers. However, the effect on the equilibrium price is ambiguous; it may rise, fall, or remain unchanged depending on the relative magnitudes of the shifts in supply and demand. If the supply shift is larger than the demand shift, prices may decrease, and vice versa.

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