Why Does It Matter Which Shift Is Larger When Demand

Why does it matter which shift is larger when demand and supply both increase?

A) The effect of a decrease in demand on price is the opposite of the effect of a decrease in supply on price.
B) The effect of an increase in demand on price is the opposite of the effect of an increase in supply on price.
C) Price changes only when the supply decreases more than demand decreases.
D) Supply always increases more than demand, so the supply shift is always larger.

Correct Answer:

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