Use the following to answer question(s): Demand and Supply Shifters

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose half the people in San Diego pack up and move to Colorado Springs.Which panel best describes how this will affect the supply of houses in San Diego?

Question

Use the following to answer question(s): Demand and Supply Shifters
 
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose half the people in San Diego pack up and move to Colorado Springs.Which panel best describes how this will affect the supply of houses in San Diego?

Quizplus · Accepted Answer

Panel (c) shows a decrease in demand (shift to the left) which leads to a surplus of houses (indicated by the gap between the original supply curve and the new, shifted demand curve). With half the people leaving San Diego, there will be a decrease in demand for houses, thus resulting in a surplus of houses.

Use the Following to Answer Question(s): Demand and Supply Shifters