Asked by Chynna Hughes on Jun 15, 2024
Verified
It is certain that the equilibrium price will fall when:
A) the supply curve and the demand curve both shift to the right.
B) the supply curve shifts to the right and the demand curve shifts to the left.
C) supply and demand both increase.
D) supply decreases and demand stays the same.
Equilibrium Price
The cost at which consumer demand for a product matches the amount producers are willing to supply, resulting in a stable market.
Supply Curve
A graph showing the relationship between the price of a good and the quantity supplied, with price on the vertical axis and quantity on the horizontal axis.
- Perceive the influence of supply and demand dynamics on the stabilization of price and quantity in the market.
- Determine the market repercussions due to adjustments in supply and demand.
Verified Answer
HF
Harman FamilyJun 20, 2024
Final Answer :
B
Explanation :
When the supply curve shifts to the right and the demand curve shifts to the left, supply will increase and demand will decrease. This will result in a surplus of the product, causing sellers to lower the price to clear the excess supply. Thus, the equilibrium price will fall.
Learning Objectives
- Perceive the influence of supply and demand dynamics on the stabilization of price and quantity in the market.
- Determine the market repercussions due to adjustments in supply and demand.
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