Asked by Isaiah Perez on May 29, 2024
Verified
It is certain that the equilibrium quantity will rise 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 shift to the left.
D) supply shifts to the left and demand stays the same.
Equilibrium Quantity
The quantity of goods or services that is supplied and demanded at the equilibrium price in a market.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale at each price level.
- Recognize the consequences of supply and demand fluctuations on the market equilibrium of price and quantity.
- Project the market consequences resulting from variations in supply and demand.
Verified Answer
FL
Farjana LavluJun 02, 2024
Final Answer :
A
Explanation :
When both the supply curve and the demand curve shift to the right, it indicates that both the quantity demanded and the quantity supplied have increased. This increase in both supply and demand will result in an increase in the equilibrium quantity.
Learning Objectives
- Recognize the consequences of supply and demand fluctuations on the market equilibrium of price and quantity.
- Project the market consequences resulting from variations in supply and demand.
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