Suppose that buying and selling a certain good is made illegal. In the market for this good, the demand curve shifts ________ and the supply curve shifts ________.
A)rightward; rightward
B)leftward; leftward
C)rightward; leftward
D)leftward; rightward
E)None of the above; neither the demand curve nor the supply curve shifts.

Question

Quizplus · Accepted Answer

When buying and selling a good is made illegal, both demand and supply decrease as consumers and producers are deterred by legal risks, shifting both curves leftward.

Suppose That Buying and Selling a Certain Good Is Made