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The overall effect on equilibrium price and quantity also depends on which shift is bigger when changes in a market environment affect both supply and demand.
Consider, as a first case, an increase in supply and an increase in demand.
Therefore, multiple demand increases will increase the equilibrium price in a market and increase the equilibrium quantity, and multiple demand decreases will decrease the equilibrium price in a market and decrease the equilibrium quantity.
When shifts of a curve work in opposite directions, the overall effect depends on which of the shifts is larger.
If the supply increase is bigger than the demand decrease (left diagram), there will be an overall increase in equilibrium quantity, but if the demand decrease is bigger than the supply increase (right diagram), an overall decrease in equilibrium quantity will result.It is, however, necessary to remember that the effect on either price or quantity (or both, when there are multiple shifts of the same curve) can be ambiguous when multiple shifts of the supply and demand curves are present.Strata Data has for many years offered a strontium isotope dating service to the petroleum industry in collaboration with Isotopic Ltd.When multiple changes in an environment only affect either supply or demand, analyzing changes in equilibrium requires almost no modification to the basic procedure.For example, multiple factors that all serve to increase supply can be thought of as a single (larger) increase in supply, and multiple factors that all serve to decrease supply can be thought of as a single (larger) decrease in supply.