Indicate whether each of the following changes will increase or decrease the equilibrium price and quantity, or whether the effect cannot be predicted.

(a) Demand increases; supply remains constant

(b) Supply increases; demand remains constant

(c) Demand decreases; supply remains constant

(d) Supply decreases; demand remains constant

(e) Demand increases; supply increases

(f) Demand decreases; supply decreases

(g) Demand increases; supply decreases

(h) Demand decreases; supply increases

(a) This will shift the demand curve rightwards and supply curve remains the same. Hence,

Equilibrium price: Increases

Equilibrium Quantity: Increases

(b) This will shift the supply curve rightwards and demand curve remains the same. Hence,

Equilibrium price: Decrease

Equilibrium Quantity: Increases

(c) This will shift the demand curve leftwards and supply curve remains the same. Hence,

Equilibrium price: Decrease

Equilibrium Quantity: Decrease

(d) This will shift the supply curve leftwards and demand curve remains the same. Hence,

Equilibrium price: Increase

Equilibrium Quantity: Decrease

(e) This will shift the supply curve and demand curve rightwards. Hence,

Equilibrium price: Indeterminate because of the magnitude of the shift in demand and supply curve.

Equilibrium Quantity: Increase

(f) This will shift the supply curve and demand curve leftwards. Hence,

Equilibrium price: Indeterminate because of the magnitude of the shift in demand and supply curve.

Equilibrium Quantity: Decrease

(g) This will shift the supply curve leftwards and demand curve rightwards. Hence,

Equilibrium price: Increase

Equilibrium Quantity: Indeterminate because of the magnitude of the shift in demand and supply curve.

(h) This will shift the supply curve rightwards and demand curve leftwards. Hence,

Equilibrium price: Decrease

Equilibrium Quantity: Indeterminate because of the magnitude of the shift in demand and supply curve.