When both supply and demand increase, which of the following can we predict will increase?

When both supply and demand increase, we can predict that quantity will increase due to the fundamental principles of supply and demand in economics.

An increase in demand means that consumers are willing to purchase more goods or services at each price level, which shifts the demand curve to the right. Simultaneously, an increase in supply indicates that producers are willing to provide more goods or services at each price level, shifting the supply curve to the right.

The intersection of the demand and supply curves determines the equilibrium price and quantity in the market. With both curves shifting to the right, the equilibrium quantity will definitively increase because more products are being purchased and produced. However, the effect on price is less certain; while demand increases may push prices up, the increase in supply may exert downward pressure on prices. Thus, we cannot predict a definitive change in price without knowing the relative magnitude of the shifts in supply and demand.

In summary, the increase in both supply and demand leads to a clear prediction that the equilibrium quantity will rise, making it the correct answer to the question.