When both the supply curve shifts to the right and the demand curve shifts to the left by the same degree, what will happen to the equilibrium price and quantity?

When both the supply curve shifts to the right and the demand curve shifts to the left by the same degree, the changes in the market will create a clear impact on both equilibrium price and quantity. A rightward shift of the supply curve signifies an increase in supply, meaning that suppliers are willing to provide more goods at every price level. Conversely, a leftward shift of the demand curve indicates a decrease in demand, meaning consumers want to purchase fewer goods at each price level.

In this scenario, the simultaneous shifts lead to an increase in the quantity available in the market driven by supply, while simultaneously reducing the quantity consumers are willing to purchase due to demand. The increase in supply tends to put downward pressure on price since more goods are available, while the decrease in demand also puts downward pressure on price as fewer goods are desired.

Since the reduction in demand and the increase in supply occur by the same degree, the combined effect is that the equilibrium price will decrease as both supply and demand conditions push the market price downward. On the other hand, the equilibrium quantity is affected by the shifts; the net result of the increase from supply and decrease from demand leads to an overall decrease in the equilibrium quantity.

Therefore, the equilibrium price decreases while the equilibrium quantity also