Question

1. If demand increases and supply increases:

   		equilibrium price will increase and equilibrium quantity will decrease.
   		equilibrium price will be uncertain and equilibrium quantity will decrease.
   		equilibrium price will be uncertain and equilibrium quantity will increase.

Answer 1

If demand increases and supply increases

equilibrium price will be uncertain and equilibrium quantity will increase

(For a given commodity,if demand increases its supply increases and so the quantity supplied rises.This shifts the demand curve to the right,which shows greater quantity for given price.The supply curve also shifts ti the right,showing greater quantity at a given price.If supply is relatively greater than equilibrium price is small,and if the demand is relatively greater the equilibrium price is higher.So the price would increase,decrease or remain constant is uncertain,but they will be more quantity at the equilibrium is certain)