$$\text { Rightward shift in demand } + \text { Rightward shift in supply curve } =$$ lower equilibrium price and smaller equilibrium quantity.

Question

Quizplus · Accepted Answer

A rightward shift in both the demand and supply curve results in an increase in equilibrium quantity, while the effect on equilibrium price is ambiguous. It could increase, decrease, or stay the same depending on the magnitude of the shifts. When both demand and supply shift rightward, the equilibrium quantity will increase, but the equilibrium price will depend on the relative magnitude of the shifts. If the increase in demand is greater than the increase in supply, then the equilibrium price will increase. If the increase in supply is greater than the increase in demand, then the equilibrium price will decrease. Therefore, we cannot conclude that a rightward shift in demand and supply always results in a lower equilibrium price and smaller equilibrium quantity.

Rightward shift in demand + Rightward shift in supply curve =\text { Rightward shift in demand } + \text { Rightward shift in supply curve } = Rightward shift in demand + Rightward shift in supply curve =

$\text { Rightward shift in demand } + \text { Rightward shift in supply curve } =$