. Two outcomes are possible, depending on the relative size of the demand and supply shifts. In...

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. Two outcomes are possible, depending on the relative size of the demand and supply shifts. In both cases, the equilibrium price rises. In panel (a), where demand increases substantially while supply falls just a little, the equilibrium quantity also increases. But in panel (b), where supply falls substantially while demand rises just a little, the equilibrium quantity falls. Thus, these events certainly raise the price of ice cream

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