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In which of the following examples will it NOT be possible to determine the effe

ID: 1176641 • Letter: I

Question

In which of the following examples will it NOT be possible to determine the effect (increase or decrease) on equilibrium price of hamburgers without knowing more about the magnitude of the shifts in supply and demand?

A) The demand for hamburgers decreases and the supply of hamburgers increases. B) The demand for hamburgers increases and the supply of hamburgers decreases. C) demand for hamburgers increases while the cost of meat increases. D) demand for hamburgers increases and the supply of hamburgers increases.    

Explanation / Answer

D) demand for hamburgers increases and the supply of hamburgers increases.

as both demand and supply increase, effect on price depends upon magnitudes of increase of supply and demand

i.e if demand is more price will increase, if supply is more than demand price will decrease