When the demand and supply of a good both shift in the same direction and amount:
A)Price will change in the same direction as the shifts in supply and demand.
B)Price will change in the opposite same direction as the shifts in supply and demand.change in price and an increase in quantity exchanged.
C)Quantity exchanged will change in the same direction as that of the shifts in supply and demand.
D)Quantity exchanged will change in the opposite direction from that of the shifts in supply and demand

Question

When the demand and supply of a good both shift in the same direction and amount:
A)​Price will change in the same direction as the shifts in supply and demand.
B)​Price will change in the opposite same direction as the shifts in supply and demand.change in price and an increase in quantity exchanged.
C)​Quantity exchanged will change in the same direction as that of the shifts in supply and demand.
D)​Quantity exchanged will change in the opposite direction from that of the shifts in supply and demand

Quizplus · Accepted Answer

If both the demand and supply of a good shift in the same direction and amount, the equilibrium price remains unchanged. However, the quantity exchanged will change in the same direction as that of the shifts in supply and demand. This is because the increase in supply and demand both signal a higher willingness to buy and sell the good, leading to an increase in quantity exchanged.

When the Demand and Supply of a Good Both Shift