As a falling price eliminates a surplus in the jersey market,
A) the demand curve for jerseys shifts leftward, and the supply curve of jerseys shifts rightward.
B) consumers increase the quantity of jerseys they demand.
C) producers increase the quantity of jerseys they supply.
D) producers decrease the quantity of jerseys they supply, and buyers decrease the quantity of jerseys they demand.
E) the demand curve for jerseys shifts rightward, and the supply curve of jerseys shifts leftward.

Question

Quizplus · Accepted Answer

When a price falls, it does not shift the demand or supply curves but moves along them. A lower price makes the product more attractive to consumers, increasing the quantity demanded.

As a Falling Price Eliminates a Surplus in the Jersey