If the demand curve for bottled water shifts rightward and the supply curve of bottled water shifts leftward, the equilibrium

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Quizplus · Accepted Answer

When the demand curve shifts rightward, it indicates an increase in demand, which tends to increase both the equilibrium price and quantity. When the supply curve shifts leftward, it indicates a decrease in supply, which tends to increase the equilibrium price and decrease the quantity. The combination of increased demand and decreased supply will definitely lead to an increase in the equilibrium price, but the effect on quantity is indeterminate without more information.

If the Demand Curve for Bottled Water Shifts Rightward and the Supply