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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