In the short run,a change in the equilibrium price will
A)always lead to inflation.
B)cause a shift in the demand curve.
C)cause a shift in the supply curve.
D)cause a change in the quantity demanded or supplied.

Question

Quizplus · Accepted Answer

In the short run, a change in the equilibrium price will cause a change in the quantity demanded or supplied, as the market adjusts to the new price. This is because the demand and supply curves are assumed to be relatively fixed in the short run, so a change in price will not cause a shift in either curve. Therefore, the only option that makes sense is D. Option A is incorrect because a change in the equilibrium price may lead to inflation in some cases, but not always. Options B and C are incorrect because these would only occur if there was a shift in the demand or supply curve, which is not assumed in the short run.

In the Short Run,a Change in the Equilibrium Price Will