|Posted on April 15, 2014 at 9:00 AM|
When the supply and demand curves shift at the same time, the change in market price or quantity will be indeterminate (increase, decrease, or stay the same). For example: when supply and demand both increase (shift to the right), the equilibrium quantity will increases, but market price will be indeterminate.
See the No Bull Review chart below for a complete summary of what happens to market equilibrium after dual shifts occur.
AP Macroeconomics / AP Microeconomics Unit 1 Basic Economic Concepts