Suppose both supply and demand increase. An increase in supply causes the price to fall and the quantity to rise, and increase in demand causes the price to rise and the quantity to rise. Both shifts increase quantity; therefore, we observe a large increase from Q* to Q2. These shifts affect price in opposite directions, so the change in equilibrium price is said to be indeterminate.

    In the graph the equilibrium price falls slightly, but the movement from P* to P2 could increase, decrease or remain the same depending on the amount of each shift.

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