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what will happen if supply increases and demand decreases for cassette tapes? What will happen when...

what will happen if supply increases and demand decreases for cassette tapes? What will happen when there is a simultaneous decrease in demand and decrease in supply? What will happen when there is an increase in demand for and a decrase in supply of milk?

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Answer #1

When both supply and demand change simultaneously but in the opposite direction change in the equilibrium quantity can be determined but the change in quantity cannot be determined.

A decrease in demand and increase in supply will cause the equilibrium price to fall and the effect on the quantity cannot be determined. The effect depend on the magnitude of changes in demand or supply.

If there is an increase in demand and decrease in supply, the equilibrium price will increase and quantity cannot be determined. It again depends on the magnitude of change.

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