If the demand for a product increases and the supply of a product increases at t

Question

If the demand for a product increases and the supply of a product increases at the same time. Then O the price will certainly stay the samo. the price may increase, decrease or stay the same. the price will certainly increase O O the price will certainly decrease. D | Question 35 As the number of firms in a market declines, the supply curve will shift to the left and the equilibrium price will rise. True False | Question 36 If the demand curve for a product shifts to the left and the supply curve for that product shifts to right, then O the equilibrium price must go down. O the equilbrium price may go up downn or stay the same based upon the information given the equilbrium price must go up. Ouection 37 em e to search

Explanation / Answer

If the demand for a product increases and the supply of a product increases at the same time . Then , the price may increase, decrease or stay the same. Because change in price depends on the increase in demand and supply. option(B) is correct.

TRUE ,as the number of firms in a market declines, the supply curve shift to the left and the equilibrium price will rise. Because more firms enter, then it is less profitable to produce more ,supply curve shifts to the left and as a result, price will rise.

If the demand curve for a product shifts to the left and the supply curve for that product shifts to right, then the equilibrium price must go down. Hence, option(A) is correct.

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