Bringing Supply and Demand Together

Very often, supply and demand will both shift in the same time period.

• Very often, supply and demand will both shift in the same time period.
• That is, supply and demand will shift simultaneously.

When supply and demand move at the same time, we can predict the change in one variable (price or quantity), but we are unable to predict the direction of effect on the other variable.

• When supply and demand move at the same time, we can predict the change in one variable (price or quantity), but we are unable to predict the direction of effect on the other variable.
• This change in the second variable, then, is said to be indeterminate, because it cannot be determined without additional information about the relative changes in supply and demand.