Understanding Double Shifts in Supply and Demand

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

• Price goes up, quantity goes down

• Price goes down, quantity goes up

• Price goes up, quantity goes up

• Price goes down, quantity goes down

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

• Price is indeterminate

• Price will remain the same

• Price will definitely increase

• Price will definitely decrease

When both demand and supply curves shift, which of the following is always true?

• Price is always indeterminate

• Quantity is always indeterminate

• Either price or quantity is indeterminate

• Both price and quantity are indeterminate

In the double mint gum example, what happens to the equilibrium price when the price of peppermint increases and demand for gum also increases?

• Price decreases

• Price is indeterminate

• Price remains the same

• Price increases

In the double mint gum scenario, what can be said about the equilibrium quantity?

• Quantity increases

• Quantity decreases

• Quantity remains the same

• Quantity is indeterminate