The effect of successful compliance with recycling regulation by homeowners on the market for recycled paper along with a concurrent rise in demand for products made with recycled paper is best shown by a shift to the right in the supply of and demand for recyclable paper and a certain drop in its price.

Question

Quizplus · Accepted Answer

A shift to the right in both supply and demand typically results in an increase in quantity but not necessarily a drop in price; the price effect depends on the relative magnitude of the shifts.

The Effect of Successful Compliance with Recycling Regulation by Homeowners