The market of a good is in equillibrium. What would be the impact on the market
price, if there is a simultaneous increase in both demand and supply of the good?
(the increase in demand being more than increase in supply)
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The equilibrium price is the price at which the quantity demanded equals the quantity supplied. ... An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
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