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Figure: Shifts in Demand and Supply IV
-(Figure: Shifts in Demand and Supply IV)Use 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 Vancouver move to Calgary.Which panel BEST describes how this will affect the market for houses in Calgary?

Question

Use the following to answer questions:
Figure: Shifts in Demand and Supply IV 
-(Figure: Shifts in Demand and Supply IV)Use 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 Vancouver move to Calgary.Which panel BEST describes how this will affect the market for houses in Calgary?

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Panel (b) illustrates a decrease in demand (shift to the left) and an increase in supply (shift to the right) resulting in a lower equilibrium price but an indeterminate change in equilibrium quantity. The scenario of half the people in Vancouver moving to Calgary would likely result in a decrease in demand for houses in Vancouver and an increase in demand for houses in Calgary, but the shift in supply is uncertain.

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