The demand for soda falls as more people switch to flavored water and ice tea. At the same time, there is an increase in the supply of soda as a result of reductions in input prices.

How will this affect the equilibrium price and equilibrium quantity, that is, do price and quantity increase or decrease, or are the answers indeterminate because they depend on the magnitudes of the shifts?

According to the given information, a simultaneous shift in the demand curve and supply curve will influence the equilibrium price and output level. A decrease in the demand for soda and an increase in the supply of soda will decrease the equilibrium price level, but the equilibrium output level will be uncertain. If the shift in supply is more than a shift in demand, equilibrium quantity will increase. On the other hand, is the shift in supply is less than the shift in demand, there will be a reduction in the equilibrium output level in the marketplace.