A decrease in price and an indeterminate change in quantity are consistent with a:
A) leftward shift in demand and no shift in supply.
B) leftward shift in supply and no shift in demand.
C) rightward shift in supply and a leftward shift in demand.
D) leftward shift in supply and a rightward shift in demand.

Question

Quizplus · Accepted Answer

A rightward shift in supply increases supply, leading to a decrease in price. A leftward shift in demand decreases demand, which can lead to an indeterminate change in quantity as the effects on quantity depend on the magnitude of the shifts.

A Decrease in Price and an Indeterminate Change in Quantity