1. What happens to equilibrium price and quantity in the following scenarios? Circle the correct answer for each scenario below.

1. Supply shifts right

PRICE ->          GOES UP                     GOES DOWN              UNDETERMINED

QUANTITY -> GOES UP                     GOES DOWN              UNDETERMINED

2. Demand decreases

PRICE ->          GOES UP                     GOES DOWN              UNDETERMINED

QUANTITY -> GOES UP                     GOES DOWN              UNDETERMINED

3. Demand and supply both increase

PRICE ->          GOES UP                     GOES DOWN              UNDETERMINED

QUANTITY -> GOES UP                     GOES DOWN              UNDETERMINED

4. Demand shifts left and supply shifts right

PRICE ->          GOES UP                     GOES DOWN              UNDETERMINED

QUANTITY -> GOES UP                     GOES DOWN              UNDETERMINED

5. A very large shift to the right in demand is accompanied by a very small shift to the left in supply (assume curves have equal magnitude of slope)

PRICE ->          GOES UP                     GOES DOWN              UNDETERMINED

            QUANTITY -> GOES UP                     GOES DOWN              UNDETERMINED