What happens to price if both demand and supply increase at the same time?

Via Scoop.itTeaching Economics

“This is a favorite question of teachers because the answer is “it depends”. How can an answer depend? We have been taught all our lives that in school (not necessarily life) there is an answer to every question. However in economics the answer often depends on the context of the question, and when both supply and demand shift right, or increase, then the answer of what happens to price is unknown without more information. To begin this discussion lets look at the market for hamburgers. We will then shift both supply and demand…”
Show original

Advertisements

Posted on August 5, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: