Identify the options which reflect the impact of simultaneous shifts of demand and supply on equilibrium

(A) When demand shift right and supply left, quantity may increase, decrease or remain unchanged but price decreases
(B) When demand and supply shift leftward, quantity decreases but price may increase, decrease or remain unchanged
(C) When demand and supply shift rightward, quantity increases but price may increase, decrease or remain unchanged
(D) When demand shift left and supply right, quantity may increases, decreases or remain unchanged but price decreases

Choose the correct answer from the options given below:

(B), (C) and (D) only

The correct answer is Option (4) → (B), (C) and (D) only

• (A) When demand shift right and supply left, quantity may increase, decrease or remain unchanged but price decreases.

  • $\uparrow D$ pushes $P$ up. $\downarrow S$ pushes $P$ up. Both forces increase $P$.

  • $\uparrow D$ pushes $Q$ up. $\downarrow S$ pushes $Q$ down. The effect on $Q$ is indeterminate.

  • Conclusion: Price increases, and quantity is indeterminate. The statement is Incorrect because it says price decreases.

• (B) When demand and supply shift leftward, quantity decreases but price may increase, decrease or remain unchanged.

  • $\downarrow D$ pushes $Q$ down. $\downarrow S$ pushes $Q$ down. Both forces decrease $Q$.

  • $\downarrow D$ pushes $P$ down. $\downarrow S$ pushes $P$ up. The effect on $P$ is indeterminate (may $\uparrow ,\downarrow ,$ or remain $\text{unchanged}$).

  • Conclusion: Quantity decreases, and price is indeterminate. The statement is Correct.

• (C) When demand and supply shift rightward, quantity increases but price may increase, decrease or remain unchanged.

  • $\uparrow D$ pushes $Q$ up. $\uparrow S$ pushes $Q$ up. Both forces increase $Q$.

  • $\uparrow D$ pushes $P$ up. $\uparrow S$ pushes $P$ down. The effect on $P$ is indeterminate (may $\uparrow ,\downarrow ,$ or remain $\text{unchanged}$).

  • Conclusion: Quantity increases, and price is indeterminate. The statement is Correct.

• (D) When demand shift left and supply right, quantity may increases, decreases or remain unchanged but price decreases.

  • $\downarrow D$ pushes $P$ down. $\uparrow S$ pushes $P$ down. Both forces decrease $P$.

  • $\downarrow D$ pushes $Q$ down. $\uparrow S$ pushes $Q$ up. The effect on $Q$ is indeterminate (may $\uparrow ,\downarrow ,$ or remain $\text{unchanged}$).

  • Conclusion: Price decreases, and quantity is indeterminate. The statement is Correct.