The correct answer is D. Demand increases and supply increases.
If both demand and supply of tablet devices increase at the same time, it would lead to an unambiguous increase in the equilibrium quantity of the devices. However, since both demand and supply are increasing by the same amount, there would be no change in the market clearing price. This is because the increase in demand is matched by the increase in supply, resulting in a situation where the quantity demanded and supplied are in equilibrium at the same price.
There are simultaneous changes in the demand for and supply of tablet devices, with the consequences being an unambiguous increase
in the equilibrium quantity of these devices but no change in the market clearing price. What changes in the demand for and supply of tablet devices could have generated these outcomes?
Part 2
A.
Demand increases and supply decreases.
B.
Demand decreases and supply increases.
C.
Demand decreases and supply decreases
.
D.
Demand increases and supply increases
.
1 answer