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

Question

Quizplus · Accepted Answer

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.

It Is Certain That the Equilibrium Price Will Rise When