Key Question) How will each of the following changes in demand
and/or supply affect equilibrium price and equilibrium quantity in a
competitive market; that is do price and quantity rise, fall, remain
unchanged, or are the answers indeterminate because they depend on the
magnitudes of the shifts? Use supply and demand diagrams to verify your
a. Supply decreases and demand is constant.
b. Demand decreases and supply is constant.
c. Supply increases and demand is constant.
d. Demand increases and supply increases.
e. Demand increases and supply is constant.
f. Supply increases and demand decreases.
g. Demand increases and supply decreases.
h. Demand decreases and supply decreases.
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