With knowledge about the direction (but not magnitude) of simultaneous supply and demand curves shifts, one can always determine the direction of changes in both equilibrium price and quantity.

Question

Quizplus · Accepted Answer

Knowing the direction of the shifts in supply and demand curves alone does not always allow for the determination of the direction of changes in both equilibrium price and quantity. The effect on equilibrium depends on the relative magnitudes of the shifts. For example, if both supply and demand increase, the effect on price is ambiguous without knowing which shift is larger, though quantity will definitely increase.

With Knowledge About the Direction (But Not Magnitude) of Simultaneous