Which of the following statements is true?
A)Endogenous changes to demand and supply curves cause them to shift.
B)Exogenous changes can never affect both the demand and supply curves.
C)Exogenous changes can sometimes affect both the demand and supply curves.
D)Movement along a demand curve means that only an endogenous factor is changing.

Question

Quizplus · Accepted Answer

Exogenous changes can affect both demand and supply curves. For example, changes in government policy or sudden changes in consumer tastes can affect both the demand and supply curves. Endogenous changes, on the other hand, refer to changes that occur within the market such as changes in the price of a good, which can cause movements along the demand and supply curves. Exogenous factors such as changes in economic policy, natural disasters, or changes in technology can affect both demand and supply curves. This can lead to shifts in either or both curves, resulting in a change in the equilibrium price and quantity. Movement along a demand curve, on the other hand, usually implies a change in the price of the good itself and is associated with a change in quantity demanded.

Which of the Following Statements Is True