Assuming that the demand and supply of a good have moved in opposite directions, but by the same amount, the new equilibrium would represent:
A)an increase in price and an increase in quantity exchanged.
B)no change in price and an increase in quantity exchanged.
C)a decrease in price and a decrease in quantity exchanged.
D)an indeterminate change in price, but no change in quantity exchanged.

Question

Assuming that the demand and supply of a good have moved in opposite directions, but by the same amount, the new equilibrium would represent:
A)​an increase in price and an increase in quantity exchanged.
B)​no change in price and an increase in quantity exchanged.
C)​a decrease in price and a decrease in quantity exchanged.
D)​an indeterminate change in price, but no change in quantity exchanged.

Quizplus · Accepted Answer

When demand and supply move in opposite directions by the same amount, the quantity exchanged remains unchanged, but the price change is indeterminate as it depends on the relative shifts of demand and supply curves.

Assuming That the Demand and Supply of a Good Have