When the demand curve shifts rightward and the supply curve shifts leftward, then the equilibrium __________price and the equilibrium quantity __________.

Question

Quizplus · Accepted Answer

When the demand curve shifts rightward, it indicates an increase in demand, which tends to increase both equilibrium price and quantity. Conversely, when the supply curve shifts leftward, it indicates a decrease in supply, which tends to increase the equilibrium price but decrease the equilibrium quantity. Therefore, the equilibrium price will definitely rise, but the change in equilibrium quantity is uncertain as it depends on the relative magnitudes of the shifts in demand and supply.

When the Demand Curve Shifts Rightward and the Supply Curve