Match List-I with List-II
| List-I | List-II | ||
| (A) | Demand and Supply shift leftward. | (I) | Price decreases. |
| (B) | Demand and Supply shift rightward. | (II) | Quantity decreases. |
| (C) | Demand shifts leftward, Supply shifts rightward. | (III) | Price increases. |
| (D) | Demand shifts rightward, Supply shifts leftward. | (IV) | Quantity increases. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
The price and the quantity of a good settle where the demand curve meets the supply curve; this point is the market equilibrium. A rightward shift of a curve means that more is demanded, or offered, at every price; a leftward shift means less.
Take the shifts one at a time:
Only demand shifts: price and quantity move the same way. A rightward shift creates excess demand at the old price, so both rise; a leftward shift lowers both.
Only supply shifts: price and quantity move in opposite ways. A rightward shift creates excess supply at the old price, so the price falls and the quantity rises; a leftward shift raises the price and lowers the quantity.
When both curves shift together, whichever of price and quantity both shifts push the same way changes for certain; the other can rise, fall or stay the same, depending on which shift is larger.
(A) Demand and Supply shift leftward. — this matches (II) Quantity decreases. Both shifts reduce the quantity, so it falls for certain, while their effects on price pull in opposite directions.
(B) Demand and Supply shift rightward. — this matches (IV) Quantity increases. Both shifts raise the quantity, while their effects on price pull in opposite directions.
(C) Demand shifts leftward, Supply shifts rightward. — this matches (I) Price decreases. Lower demand and higher supply both push the price down; the quantity may go either way.
(D) Demand shifts rightward, Supply shifts leftward. — this matches (III) Price increases. Higher demand and lower supply both push the price up; the quantity may go either way.
Note: A same/similar question was asked in CUET (UG) in the papers below.
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 20-05 S1 | 30-05 S2* | – | – | – |
* A similar question.
NCERT (2025-26): “Simultaneous Shifts of Demand and Supply … What happens when both demand and supply curves shift simultaneously? The simultaneous shifts can happen in four possible ways: (i) Both supply and demand curves shift rightwards. (ii) Both supply and demand curves shift leftwards. (iii) Supply curve shifts leftward and demand curve shifts rightward. (iv) Supply curve shifts rightward and demand curve shifts leftward. The impact on equilibrium price and quantity in all the four cases are given in Table 5.1. Each row of the table describes the direction in which the equilibrium price and quantity will change for each possible combination of the simultaneous shifts in demand and supply curves. For instance, from the second row of the table, we see that due to a rightward shift in both demand and supply curves, the equilibrium quantity increases invariably but the equilibrium price may either increase, decrease or remain unchanged. The actual direction in which the price will change will depend on the magnitude of the shifts. Check this yourself by varying the magnitude of shifts for this particular case. In the first two cases which are shown in the first two rows of the table, the impact on equilibrium quantity is unambiguous but the equilibrium price may change, if at all, in either direction depending on the magnitudes of shifts. In the next two cases, shown in the last two rows of the table, the effect on price is unambiguous whereas effect on quantity depends on the magnitude of shifts in the two curves.”
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