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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 pack up and move to Colorado Springs. Which panel BEST describes how this will affect the supply of houses in San Diego?
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 pack up and move to Colorado Springs. Which panel BEST describes how this will affect the supply of houses in San Diego?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

When half of the people move away, the demand for houses in San Diego decreases, leading to a surplus of houses, which effectively increases the supply relative to demand. Panel C, which shows a rightward shift in supply, best represents this scenario.

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