An ambiguous change in price and a decrease in quantity are MOST likely caused by:
A)no shift in supply and a shift to the left in demand.
B)a shift to the left in supply and a shift to the left in demand.
C)a shift to the right in supply and a shift to the left in demand.
D)a shift to the left in supply and a shift to the right in demand.

Question

Quizplus · Accepted Answer

When both supply and demand shift to the left, quantity decreases. The change in price is ambiguous because a decrease in supply (shift left) tends to increase price, while a decrease in demand (shift left) tends to decrease price.

An Ambiguous Change in Price and a Decrease in Quantity