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Figure: Shifts in Demand and Supply IV
-(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose half of the people in San Diego move to Colorado Springs. Which panel BEST describes how this will affect the market for houses in Colorado Springs?
A)panel A
B)panel B
C)panel C
D)panel D

Question

Use the following to answer questions :
Figure: Shifts in Demand and Supply IV 
-(Figure: Shifts in Demand and Supply IV) Look at the figure Shifts in Demand and Supply IV. The figure shows how supply and demand might shift in response to specific events. Suppose half of the people in San Diego move to Colorado Springs. Which panel BEST describes how this will affect the market for houses in Colorado Springs?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

Panel B shows a decrease in demand, which would occur if half the people in San Diego move away, resulting in less demand for houses in Colorado Springs. This would lead to a decrease in equilibrium price and quantity of houses in Colorado Springs.

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