Answer
If both demand and supply drops, price remains the same.
If only demand falls, price would increase.
If only supply falls, price would decrease.
Work Step by Step
Equilibrium Price and Quantity at D2/S2:
Quantity: 8500
Price: 2 dollars
If both fall, equilibrium quantity would be 7000 and both D1 and S1 would still be in equilibrium at price = 2 dollars as seen from the table.
If just demand falls, price would increase since there would be an upward pressure in price, as price would move along the supply curve as can be seen from diagram 1.
If just supply falls, price would decrease since there would be an downward pressure in price, as price would move along the demand curve as can be seen from diagram 2.
