Question

Market for a good is in equilibrium. There is simultaneous "Increase" both in demand and supply of the good. Explain its effect on market price.
OR
Suppose there is a sudden increase in birth rate. The increase in population has raised the demand for shirts. At the same time, due to fall in price of cotton, the supply of shirts have also increased. How will it affect the equilibrium price and equilibrium quantity of shirts?

Answer 1

If the increase in demand is equal to increase in supply then the equilibrium price will not change.
If the increase in demand is more than the increase in supply then the equilibrium price will rise.
If the increase in demand is less than the increase in supply then the equilibrium price will fall.