Answer the following questions:

Worksheet 7.5: Simultaneous Shifts 1. Start by drawing four supply and demand graphs in equilibrium. To each one, make the following change: (A) There is a small increase in demand and a larger increase in supply (B) There is a small increase in demand and an equal decrease in supply (C) There is a large decrease in demand and a small increase in supply (D) There is a large increase in demand and a small decrease in supply (A) (B) Price 51 Price 51 E1 E1 Dl D1 Quantity Quantity Change in P?___ Q? Change in P? Q? (C) (D) Price 51 Price 51 E1 E1 01 [)1 Quantity Quantity Change in P?___ Q? Change in P? Q? 2. Note the effect on equilibrium price and quantity in each scenario. 3. If you were NOT told by how much each increase or decrease was, what would be an unavoidable result in either price or quantity for double shifts in supply and demand? 4. What is the general rule when both demand and supply shift