Answer:
Step-by-step explanation:
The correct answer is d. The Equilibrium quantity will increase.
When supply and demand both increase, the quantity of goods sold will also increase. If supply and demand both increase at about the same rate, the price of a product will remain steady. If demand increases more than supply, prices will rise. If supply increases more than demand, prices will fall.
If there is an increase in demand for a good, it will lead to an increase in price as well as quantity demanded. At the same time, if there is an increase in the supply of a good, it will reduce the market price but increase the quantity supplied. As a result of the combined effect of both the changes, it can be said that the change in price is ambiguous, but market quantity will increase as the quantity demand as well as quantity supplied both are increasing.
