Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by a ________.

Question

Quizplus · Accepted Answer

When both the supply curve shifts to the left (indicating a decrease in supply) and the demand curve shifts to the right (indicating an increase in demand), and the shift in demand is greater than the shift in supply, the result is typically a higher equilibrium price due to increased demand and decreased supply, and a higher quantity because the increase in demand more than offsets the decrease in supply.

Assume That the Supply Curve for a Commodity Shifts to the Left