If the demand and supply of a commodity increase by an equal absolute amount, what will be the effect on market price?
Q. If the demand and supply of a commodity increase by an equal absolute amount, what will be the effect on market price?
Answer: Remain Stable
Notes: When the market is in equilibrium, and when the demand and supply of a commodity increase by an equal absolute amount, the market price will not increase, rather it will remain stable.

 

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