It is certain that the equilibrium quantity will fall when:
A)the supply curve and the demand curve both shift to the right.
B)the supply curve shifts to the right and the demand curve shifts to the left.
C)the supply curve shifts to the left and demand shifts to the right.
D)supply shifts to the left and demand stays the same.

Question

Quizplus · Accepted Answer

When supply shifts to the left and demand stays the same, the equilibrium quantity will fall. This is because the decrease in supply will lead to a higher equilibrium price, which will in turn lead to a lower equilibrium quantity.

It Is Certain That the Equilibrium Quantity Will Fall When