Double Shifts- Supply and Demand

Jacob Clifford introduces the concept of double shifts in supply and demand curves in this ACDC Econ video. He explains how individual shifts affect price and quantity, and what happens when both supply and demand shift simultaneously. Using a practical example with doublemint gum, he demonstrates how to determine the indeterminate nature of price or quantity in such scenarios. The video concludes with advice on practicing these concepts to better understand economic graphs.

What happens to the price and quantity when the supply curve shifts to the right?

• Price goes down, quantity goes up

• Price goes up, quantity goes up

• Price goes up, quantity goes down

• Price goes down, quantity goes down

In a double shift scenario, if both supply and demand increase, what can be said about the price?

• Price will definitely decrease

• Price will definitely increase

• Price will remain the same

• Price is indeterminate

When both supply and demand curves shift, what is the rule regarding the indeterminate factor?

• Both price and quantity are indeterminate

• Either price or quantity is indeterminate

• Only quantity is indeterminate

• Neither price nor quantity is indeterminate

In the doublemint gum example, what happens to the equilibrium price when the price of peppermint increases and demand rises?

• Price decreases

• Price remains the same

• Price is indeterminate

• Price increases

What is the recommended method to solve double shift problems effectively?

• Draw each shift separately and combine results

• Only consider the supply shift

• Guess the outcome

• Only consider the demand shift