When supply shifts right and demand shifts left at the same time, the equilibrium market price drops.

Question

Quizplus · Accepted Answer

When supply increases (shifts right), it means more of the good is available, which tends to lower the price. When demand decreases (shifts left), it means there is less desire for the good, which also tends to lower the price. Together, these shifts lead to a decrease in the equilibrium market price.

When Supply Shifts Right and Demand Shifts Left at the Same