When both supply and demand increase in a market, what is the likely effect on prices?

When both supply and demand increase simultaneously in a market, the most likely effect on prices is that they may remain stable or not change significantly. This is due to the principle of supply and demand equilibrium.

When demand increases, consumers are willing to purchase more goods, which could put upward pressure on prices. However, if supply also increases, more goods are available to meet that new demand, which can counteract the potential rise in prices. Essentially, an increase in supply helps to satisfy the increase in demand, resulting in a balance that keeps prices steady.

In contrast, if only one side were to change while the other remained constant, that would more likely lead to fluctuations in price. For instance, if demand increased but supply stayed the same, prices would likely rise. Conversely, if supply increased while demand stayed constant, prices could potentially fall. However, because both factors are increasing, they balance each other out, leading to relatively stable prices.