Question

True or False: When the demane curve and the supply curve shiftin the direction previously indicated, the effect on the eaqulilbrium price is dear even without knowing the magnitude of the shifts. O True O False
Consider the following events: Scientists reveal that eating oranges decreases the risk of Gabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges show the effect of these two events on the market for oranges
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Answer #1

Both the events will lead to increase in demand and increase supply of oranges at the same time.

False

Knowledge of the magnitude of shift is necessary to know the exact equilibrium price because the magnitude of the shift of both can be different.

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