Shifts in both Supply and Demand What happens to Price

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Presentation transcript:

Shifts in both Supply and Demand What happens to Price and what happens to Quantity?

Increase in demand Increase in supply P S S P1 Quantity will definitely increase. P1 P D1 Price is Indeterminate D It will either go up. Q Q1 Q1 Q Increase in demand Increase in supply

Increase in demand Increase in supply P S S P1 Quantity will definitely increase. P1 P D1 Price is Indeterminate D It stayed the same. Q Q1 Q1 Increase in demand Increase in supply

Increase in demand Increase in supply P S P1 Quantity will definitely Price is Indeterminate D It went down. Q Q1 Q1 Increase in demand Increase in supply

What happens to the price and quantity if there is an increase in demand and a decrease in supply? Price definitely goes up; Quantity is indeterminate

What happens to the price and quantity if there is a decrease in demand and an increase in supply? Price definitely goes down; Quantity is indeterminate

What happens to the price and quantity if there is a decrease in demand and an decrease in supply? Price is indeterminate; Quantity will definitely decrease

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