Final answer:
"Double shifts" of supply and demand reference the simultaneous changes in supply and demand, which can affect the equilibrium price and quantity in a market.
Step-by-step explanation:
"Double shifts" of supply and demand refers to simultaneous changes in both supply and demand curves. This situation occurs when both market forces experience shifts that can, in turn, affect the equilibrium price and quantity of goods and services in the market.
Example of Double Shifts Impacting Equilibrium
Consider a scenario where the supply of a good decreases due to higher production costs while, at the same time, the demand for that good increases because of a rise in consumer income. The supply shift would typically lead to a higher equilibrium price and lower quantity, whereas the demand shift would lead to a higher equilibrium price and higher quantity.
When both shifts occur, the combined analysis is needed to determine the new equilibrium. If the shifts are graphed on a single demand and supply diagram, as in Figure 3.19, we can visually assess how the new equilibrium is established with potentially mixed effects on the price and quantity.
Overall, these changes emphasize the interactions between supply and demand and their importance in determining market outcomes.