Question
1.In the net, how are price (P) and quantity (Q) changed by a simultaneous increase in demand and decrease in supply? Price increases and quantity
1.In the net, how are price (P) and quantity (Q) changed by a simultaneous increase in demand and decrease in supply?
Price increases and quantity is ambiguous. (Dependent upon how large of a shift in supply/demand)
2.In the net, how are price (P) and quantity (Q) changed by a simultaneous decrease in demand and supply?
Price is ambiguous, quantity decreases.
3.In the net, how are price (P) and quantity (Q) changed by a simultaneous decrease in demand and increase in supply?
Price decreases, quantity ambiguous.
Can someone please explain in detail why and how questions 1-3 ended up with given answers?
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Macroeconomics Policy And Practice
Authors: Frederic Mishkin
2nd Edition
0133424316, 978-0133424317
