Scenario: In the market for cat food, in increase in the sellers is met by a
proportional increase in the number of buyers
In the scenario, demand will while supply will . As such, the price will and the quantity will .
Scenario: In the market for digital cameras, high production costs due to a recent hurricane are met with an increase in the price of smartphones, a substitute for digital camera
In the scenario, demand will while supply will . As such, the price will and the quantity will .
Scenario: Consumer income is falling due to unemployment while restaurants observe the increase in prices for food trucks, a substitute-in-production
In the scenario, demand will while supply will . As such, the price will and the quantity will .
Scenario: Producers of smelly pencils foresee a decrease in the price, sometime soon, while consumers are repulsed by the smelly smell of smelly pencils
In the scenario, demand will while supply will . As such, the price will and the quantity will .
Given the double shift and the respective magnitude of change, determine the impact on price and quantity. Note: Since the magnitude of change is given for EACH, price and quantity will not be indeterminate.
P↑Q↑ | P↑Q↓ | P↓Q↑ | P↓Q↓ | |
|---|---|---|---|---|
D increases by 10 units at all prices; S increases by 5 units at all prices | ||||
D decreases by 15 units at all prices; S increases by 5 units at all prices | ||||
D decreases by 5 units at all prices; S decreases by 10 units at all prices | ||||
D increases by 5 units at all prices; S decreases by 15 units at all prices |