Question

If the demand and supply of a commodity both increase, the equilibrium price may not change, may increase, may decrease." Explain by using diagrams.

Answer 1

If the increase in demand equals increase in supply then the equlibrium price will not change.
If the increase in demand is more than the increase in supply then the equilibrium price will increase.
If the increase in demand is less than the increase in supply then the equilibrium price will fall.