If both the supply and demand curves shift to the left, then we can conclude that there will be
A) an increase in the equilibrium quantity sold.
B) a decrease in the equilibrium quantity sold.
C) an increase in the equilibrium price.
D) a decrease in the equilibrium price.

Question

Quizplus · Accepted Answer

When both the supply and demand curves shift to the left, the equilibrium price will increase, but the equilibrium quantity sold will decrease. This is because both shifts indicate a decrease in the willingness and ability of both buyers and sellers to engage in transactions at the original equilibrium price and quantity. As a result, there will be a decrease in the quantity traded, leading to a decrease in the equilibrium quantity sold.

If Both the Supply and Demand Curves Shift to the Left