Double Shifts- Supply and Demand

If the supply of a product increases, what is the immediate effect on its equilibrium price and quantity?

• Price decreases, Quantity increases.

• Price increases, Quantity decreases.

• Price decreases, Quantity decreases.

• Price increases, Quantity increases.

When both the supply and demand curves for a product shift simultaneously, what is always true about the equilibrium price or quantity?

• Both price and quantity will always increase.

• Both price and quantity will always decrease.

• Either the price or the quantity will be indeterminate.

• Neither price nor quantity will change.

If both the demand for a product and the supply of that product increase, what will be the effect on the equilibrium price and quantity?

• Price will increase, Quantity will be indeterminate.

• Price will decrease, Quantity will increase.

• Price will be indeterminate, Quantity will increase.

• Price will be indeterminate, Quantity will decrease.

Suppose the cost of peppermint, a key ingredient for Doublemint gum, increases, and at the same time, a new trend causes the demand for Doublemint gum to increase. What will be the effect on the equilibrium price and quantity of Doublemint gum?

• Price will increase, Quantity will be indeterminate.

• Price will decrease, Quantity will increase.

• Price will be indeterminate, Quantity will increase.

• Price will be indeterminate, Quantity will decrease.