Micro Unit 2, Question 5: Double Shifts in Supply and Demand

The video tutorial explains the simultaneous shifts in demand and supply curves and their impact on price and quantity. It introduces the concept of indeterminate price, where the price cannot be determined due to opposing shifts. A technique is suggested to analyze these shifts separately on different graphs to better understand their effects. The tutorial concludes that while quantity will definitely increase, the price remains indeterminate.

What happens to the demand curve when there is an increase in demand?

• It shifts to the right.

• It becomes vertical.

• It shifts to the left.

• It remains unchanged.

When both demand and supply increase, what is the definite outcome for quantity?

• Quantity increases.

• Quantity remains the same.

• Quantity becomes zero.

• Quantity decreases.

What is the term used to describe the uncertainty in price when both demand and supply increase?

• Variable Price

• Stable Price

• Indeterminate Price

• Fixed Price

How can you determine the effect of shifts on price and quantity more accurately?

• By combining both shifts on one graph.

• By ignoring the supply curve.

• By analyzing each shift separately.

• By assuming price remains constant.

What is the final conclusion about the effect on price when analyzing shifts separately?

• Price will definitely increase.

• Price will definitely decrease.

• Price is indeterminate.

• Price will remain constant.