Question

If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:

a.a higher quantity and price.
b.a lower quantity and a higher price.
c.the same quantity and a lower price.
d.a higher quantity and the same price.

Answer 1

d. A higher quantity and the same price.

Step-by-step explanation:

A shift in the demand and supply curves to the right by the same amount there is a proportionate shift in both curves to the right which causes the equilibrium price to remain constant and the equilibrium quantity to increase.