Assume that the market for radios is perfectly competitive and there is a simultaneous increase in supply and demand. What can be said about the new equilibrium relative to the one before the shifts in supply and demand occurred?
A. An increase in equilibrium price and quantity
B. A decrease in equilibrium price and quantity
C. An increase in equilibrium quantity and uncertain effect on equilibrium price
D. A decrease in equilibrium price and increase in equilibrium quantity© BrainMass Inc. brainmass.com December 20, 2018, 9:15 am ad1c9bdddf
This solution briefly describes the effects of the change. Supply and demand affect equilibrium price and quantity is examined.