()6. If the supply curve shifis left and there is also an merease in demand what happens equilibrium price and quantily? (i)) Price increases, quantity is indeterminate try Price decreases quantity is indeterminale c) Price is indeterminate quantity increases d) Price is indeterminale quantity decreases

Question

()6. If the supply curve shifis left and there is also an merease in demand what happens equilibrium price and quantily? (i)) Price increases, quantity is indeterminate try Price decreases quantity is indeterminale c) Price is indeterminate quantity increases d) Price is indeterminale quantity decreases

Answer 1

The correct answer is (i) Price increases, quantity is indeterminate.When the supply curve shifts left, it indicates a decrease in supply. An increase in demand will cause the equilibrium price to increase. However, the effect on the equilibrium quantity is indeterminate because it depends on the magnitude of the shift in the supply curve and the magnitude of the increase in demand.

Question

Solution

Resposta