Use the following to answer question(s): Simultaneous Shifts in Demand and Supply

-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market, following the adjustment shown:

Question

Use the following to answer question(s): Simultaneous Shifts in Demand and Supply
 
-(Exhibit: Simultaneous Shifts in Demand and Supply) D₁ and S₁ are original supply and demand curves, and S₂ and D₂ are new curves.In this market, following the adjustment shown:

Quizplus · Accepted Answer

The shifts to D2 and S2 indicate that both demand and supply have increased. Given these simultaneous shifts, it's logical that the quantity would increase. The direction of the price change can be ambiguous without specific information on the magnitude of shifts, but in this context, all statements are consistent with the described changes.

Use the Following to Answer Question(s): Simultaneous Shifts in Demand