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Examveda

A rise in supply and demand in equal proportion will result in

A. Increase in equilibrium price and equilibrium quantity

B. Decrease in equilibrium price and increase in equilibrium quantity

C. No change in equilibrium price and increase in equilibrium quantity

D. Increase in equilibrium price and no change in equilibrium quantity

Answer: Option C

Solution(By Examveda Team)

A rise in supply and demand in equal proportion will result in no change in equilibrium price and increase in equilibrium quantity.

This Question Belongs to Commerce >> Economics

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Related Questions on Economics

Which among the following statement is INCORRECT?

A. On a linear demand curve, all the five forms of elasticity can be depicted

B. If two demand curves are linear and intersecting each other, then, coefficient of elasticity would be same on different demand curves at the point of intersection.

C. If two demand curves are linear and parallel to each other, then, at a particular price, the coefficient of elasticity would be different on different demand curves.

D. The price elasticity of demand is expressed in terms of relaive not absolute changes in Price and Quantity demanded.