incentive assignment before question part 1 of 3 my score: 67.17/116 if the demand and supply curves…
incentive assignment before question part 1 of 3 my score: 67.17/116 if the demand and supply curves increase (shift outward) by identical proportions then a. equilibrium price stays the same and quantity rises. b. equilibrium price and quantity do not change. c. equilibrium price and quantity both increase. d. equilibrium price increases but quantity falls.
Answer
Brief Explanations:
When demand and supply curves shift outward by identical proportions, the new equilibrium is at a higher - quantity level. Since the shifts are proportional, the relative balance between demand and supply with respect to price remains the same, so the equilibrium price stays constant.
Answer:
A. equilibrium price stays the same and quantity rises.