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If both demand and supply were to increase then:

A. Quantity exchanged would fall and price would rise

B. Quantity exchanged and price would both fall

C. Quantity exchanged would rise and price might rise or fall

D. Quantity exchanged and price would both rise

Correct Answer : C.


If both demand and supply increases, then both curves shift to the right, and quantity exchanged surely increases, but price may rise or fall depending on which curve shifted further.}

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