Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will occur as a result of these simultaneous events?
A. The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise.
B. The market clearing price will fall, but the equilibrium quantity will rise.
C. Both the market clearing price and equilibrium quantity will rise.
D. The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.
Answer: A
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a. True b. False
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