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Market for a good is in equilibrium. Wha...

Market for a good is in equilibrium. What is the effect on equilibrium price and quantity if both market demand and market supply of the good increase in the same proportion? Use diagram.

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Only the equilibrium quantity will increase. The equilibrium price will remain the same since the effect of increase in supply and increase in demand will cancel out each other.
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SANDEEP GARG-PRICE DETERMINATION AND SIMPLE APPLICATIONS-Long Answer Type Questions
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  16. Explain the changes that will take place in the market when market pri...

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  17. The market for commodity A is in equilibrium. The price of its inputs ...

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  20. Explain the meaning of excess demand and excess supply with the help o...

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