What happens to quantity when both supply and demand increase simultaneously?

When both supply and demand increase simultaneously, the effect on quantity is indeed ambiguous, making it a complex situation. An increase in demand typically leads to an increase in quantity as consumers are willing to purchase more at every price level. Similarly, an increase in supply generally results in a higher quantity being available in the market, as producers are willing to sell more at each price point.

However, what complicates this situation is that while both the quantity supplied and the quantity demanded are increasing, the final outcome will depend on the relative magnitudes of the shifts in supply and demand. If supply increases more than demand, the increase in quantity might be less pronounced, or even offset, leading to a decrease in price. Conversely, if demand increases significantly more than supply, the quantity could rise sharply, potentially increasing the price as well.

Since the specific changes in the market can vary—depending on how much supply and demand shift—the overall impact on quantity cannot be determined without additional information. Therefore, the outcome is considered ambiguous, illustrating the interconnected dynamics of supply and demand in economics.