Asked by Yasmine Abbas on Jun 14, 2024

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It is certain that the equilibrium price will rise when the supply curve shifts to the _____ and the demand curve shifts to the _____.

A) right;right
B) right;left
C) left;left
D) left;right

Supply Curve

The supply curve is a graphical representation of the relationship between the price of a good or service and the quantity supplied by producers, typically sloping upwards indicating a higher quantity supplied at higher prices.

Demand Curve

A graphical representation showing the relationship between the quantity demanded of a good and its price.

  • Grasp the ramifications of changes in supply and demand on the determination of equilibrium price and quantity.
  • Infer the outcomes in the market from transitions in supply and/or demand.
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ED
Ekrem Demirbo?aJun 18, 2024
Final Answer :
D
Explanation :
When the supply curve shifts to the left (i.e. decreases) and the demand curve shifts to the right (i.e. increases), the equilibrium price will definitely rise. This can be understood by realizing that a decrease in supply means that there is less of the good available at each price, which shifts the supply curve to the left. At the same time, an increase in demand means that consumers are willing to buy more at each price, which shifts the demand curve to the right. As a result, there is an increase in both price and quantity demanded, leading to a new equilibrium at a higher price.