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Question: Unless you have already completed macroeconomics, wait till this topic has been completed before attempting it. Answer the question below. Use one graph to show the shift in demand and another graph to show the shift in supply. Compare the change in price in the two graphs. See if they are consistent in that both graphs suggest the same outcome for price, or not. Make the same comparison of the two graphs for quantity.
If the supply for a product increases and demand for that product decreases, then equilibrium:
Quantity must fall and equilibrium price must rise.
Price must fall, but equilibrium quantity may rise, fall, or remain unchanged.
Quantity must decline, but equilibrium price may rise, fall, or remain unchanged.
Quantity and equilibrium price must both decline.
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