It is certain that the equilibrium price will fall when:
A)the supply curve and the demand curve both shift to the right.
B)the supply curve shifts to the right and the demand curve shifts to the left.
C)supply and demand both increase.
D)supply decreases and demand stays the same.

Question

Quizplus · Accepted Answer

When the supply curve shifts to the right and the demand curve shifts to the left, supply will increase and demand will decrease. This will result in a surplus of the product, causing sellers to lower the price to clear the excess supply. Thus, the equilibrium price will fall.

It Is Certain That the Equilibrium Price Will Fall When