The change in an equilibrium value is sometimes indeterminate due to the fact that
A) it is possible for demand to increase or decrease more than supply increases or decreases.
B) demand always shifts less than supply.
C) supply always shifts less than demand.
D) both supply and demand may not change.
E) both supply and demand may increase or decrease by equal amounts.

Question

Quizplus · Accepted Answer

When both demand and supply can increase or decrease, the net effect on equilibrium depends on the relative magnitudes of these changes, making the outcome indeterminate.

The Change in an Equilibrium Value Is Sometimes Indeterminate Due