Supply of coffee (caused perhaps by bad weather). Of course, the demand and supply curves could shift in the same direction or in opposite directions, depending on the specificįor example, all three panels of Figure 3.11 "Simultaneous Decreases in Demand and Supply" show a decrease in demand for coffee (caused perhaps by a decrease in the price of a substitute good, such as tea) and a simultaneous decrease in the Only in which direction the demand and supply curves have shifted but also the relative amount by which each curve shifts. To figure out what happens to equilibrium price and equilibrium quantity, we must know not
However, in practice, several events may occur at around the same time that cause both the demand and supply curves to shift. As we have seen, when either the demand or the supply curve shifts, the results are unambiguous that is, we know what will happen to both equilibrium price and equilibrium quantity, so long as we know whether demand or supply increased
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