Asked by Pablo Porcayo on May 05, 2024
Verified
An ambiguous change in price and a decrease in quantity are MOST likely caused by:
A) no shift in supply and a shift to the left in demand.
B) a shift to the left in supply and a shift to the left in demand.
C) a shift to the right in supply and a shift to the left in demand.
D) a shift to the left in supply and a shift to the right in demand.
Shift Left
A decrease in the supply or demand of a product in a market diagram, typically resulting in a lower equilibrium quantity and potentially a higher or lower equilibrium price.
Demand
The quantity of a good or service consumers are willing and able to purchase at various prices.
- Learn about the repercussions of supply and demand modifications on the equilibrium of price and quantity.
- Envision the market effects triggered by modifications in supply and demand.
Verified Answer
NT
Nguyên TrungMay 09, 2024
Final Answer :
B
Explanation :
When both supply and demand shift to the left, quantity decreases. The change in price is ambiguous because a decrease in supply (shift left) tends to increase price, while a decrease in demand (shift left) tends to decrease price.
Learning Objectives
- Learn about the repercussions of supply and demand modifications on the equilibrium of price and quantity.
- Envision the market effects triggered by modifications in supply and demand.
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