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What will happen to equilibrium prices if both demand and supply change in opposite directions in...

What will happen to equilibrium prices if both demand and supply change in opposite directions in a market simultaneously by the same proportions at all price/quantity combinations?  You are not required to respond to your peers.

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Answer #1

When both demand and supply increases or decreases by the same proportion then the effect on Equilibrium price is INDERTERMINATE.

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