Question

Suppose that demand for soybeans increases, and simultaneously, the supply of soybeans increases. Which of the following would you conclude definitely will occur in the market for soybeans?

a. The market clearing will rise.
b. The market clearing price will fall.
c. The equilibrium quantity will rise.
d. The equilibrium quantity will fall.

Answer 1

The correct answer is letter "C": The equilibrium quantity will rise.

Step-by-step explanation:

The equilibrium point refers to the intersection of the supply and demand curves of a good or service as a result of having a determined quantity supplied that matches with the quantity demanded at a certain price, keeping other things constant -ceteris paribus.

Thus, an increase in supply and demand for soybeans will increase the equilibrium point of the quantity supplied and demanded for soybeans.

Answer 2

Answer:a. The market clearing will rise.

Explanation:Market clearing

Equilibrium price is referred to as market clearing price ,this is the point in which the quantity produced is completely sold or bought by consumers hence a point in which demand is equal to supply. This means everything gets sold out . There is no excess and there is no shortage.