Questions: Multiple Choice Question The change in price or quantity will be indeterminate when: supply changes. both demand and supply change. demand changes. either demand or supply changes. Need help? Review these concept resources.

The answer is both demand and supply change.

When only supply changes, the direction of the change in price or quantity can be determined based on whether the supply increases or decreases. For example, if supply increases, the price typically decreases, and the quantity increases, assuming demand remains constant.

When both demand and supply change simultaneously, the effect on price and quantity becomes indeterminate without additional information. This is because the changes in demand and supply can offset each other or amplify each other in various ways, leading to different outcomes. For instance, if both demand and supply increase, the quantity will likely increase, but the effect on price will depend on the relative magnitudes of the shifts.

When only demand changes, the direction of the change in price or quantity can be determined based on whether the demand increases or decreases. For example, if demand increases, the price typically increases, and the quantity increases, assuming supply remains constant.

This option is similar to options 1 and 3, where the change in either demand or supply alone allows for a determinate outcome in terms of price and quantity, assuming the other factor remains constant.