Question

How market equilibrium impacted by shift in demand and supply in same direction?

Answer 1

A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. 1. ... If demand and supply change in the same direction, the change in the equilibrium output can be determined, but the change in the equilibrium price cannot.

Answer 2

A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.If demand and supply change in the same direction, the change in the equilibrium output can be determined, but the change in the equilibrium price cannot