Figure 17.1.1
-Refer to Figure 17.1.1 above. As buyers of high-quality cars lower their expectations of the average quality of a car in the market,
A) both demand curves initially shift down.
B) both demand curves shift up before shifting down.
C) the demand in panel (a)shifts down and the demand in panel (b) shifts up.
D) the demand curves may shift up and down unpredictably.

Question

Figure 17.1.1
-Refer to Figure 17.1.1 above. As buyers of high-quality cars lower their expectations of the average quality of a car in the market,
A) both demand curves initially shift down. 
B) both demand curves shift up before shifting down. 
C) the demand in panel (a)shifts down and the demand in panel (b) shifts up. 
D) the demand curves may shift up and down unpredictably.

Quizplus · Accepted Answer

The Answer is C

Figure 17.1.1 -Refer to Figure 17.1.1 Above. as Buyers of High-Quality Cars