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3. W hen supply and demand both increase, equilibrium: price will increase B. price will decrease C. price may increase, decrease, or remain unchanged D. quantity may increase, decrease, or remain unchanged

Solution

Answer is C. Price may increase, decrease or remain unchanged.

Explanation:

The Increase in demand and supply will lead to shift in both the curves towards right which will definitely lead to increase in equilibrium demand and however, change in price is depending on the quantum of increase in demand and supply.