If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then
A) the equilibrium quantity definitely increases.
B) the equilibrium quantity definitely decreases.
C) the equilibrium quantity definitely remains the same.
D) More information is needed to determine the effect on the equilibrium quantity.
E) the equilibrium price definitely falls.

Question

Quizplus · Accepted Answer

Without information about the extent of the shifts in the demand and supply curves, it is impossible to determine the direction of the change in the equilibrium quantity. If the rightward shift in the demand curve is larger than the leftward shift in the supply curve, the equilibrium quantity will increase. Conversely, if the leftward shift in the supply curve is larger than the rightward shift in the demand curve, the equilibrium quantity will decrease. If the two shifts are equal in magnitude, the equilibrium quantity will remain the same. Therefore, more information is needed to determine the effect on the equilibrium quantity. The equilibrium price is also uncertain and cannot be determined without further information.

If the Demand Curve for Desktop Computers Shifts Rightward and at the Same