What can you conclude if both demand and supply of a good increase and the equilibrium price remains the same?

When both demand and supply of a good increase, the effect on the equilibrium price depends on the relative magnitudes of these changes. If the equilibrium price remains unchanged despite both curves shifting outward, it indicates that the increases in demand and supply have occurred to precisely offset each other in terms of their impact on price.

When demand increases, typically, there is an upward pressure on price as consumers are willing to pay more at the higher quantity demanded. Conversely, an increase in supply usually exerts downward pressure on price since there is more of the good available in the market, leading to competition among sellers and potentially lower prices.

If the equilibrium price is stable after both shifts, this implies that the magnitude of the increase in demand exactly matches the magnitude of the increase in supply. Therefore, the two forces are essentially balanced. Thus, concluding that demand and supply increased by an equal amount is entirely valid given that the price did not change; this means that the resulting quantity available in the market did increase, but the price remained at its previous level.

The other options imply differing scenarios regarding the relationship between the increases in demand and supply, which cannot hold true in this case as reflected in the unchanged equilibrium price.