Assignment 1 i Saved Help Save & Exit 5 Suppose that there are shocks to both sides of the market. For example, on the demand side the price of a substitute good increases. On the supply side there is a decrease in the number of sellers. a. given these two shocks, Demand will: ( shift outwards 2 Supply will: shift inwards points Now check your work and determine the correct direction in the shift for demand and supply. Experiment with different size shocks. Note: using each slider, the center position represents no-change. There can be small, bigger or big shifts left or right. big small small big eBook bigger bigger b. A small shift in demand and big shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: (Click to select) Equilibrium quantity: (Click to select) 4 Click 'reset'. c. A big shift in demand and a small shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: (Click to select) Equilibrium quantity: (Click to select) Click 'reset'. d. A big shift in demand and a big shift in supply. What can you conclude about the net effect on equilibrium price and quantity? Equilibrium price: (Click to select) Equilibrium quantity: (Click to select) : e. Given your experimentation what can you conclude about the net effect on equilibrium price and quantity given these two original shocks? Equilibrium price: (Click to select) Equilibrium quantity: (Click to select) Next