Learning Path
Question & Answer
Choose the Best Answer
Equilibrium price will rise, and quantity will fall
Equilibrium price will fall, and quantity will rise
Equilibrium price will remain unchanged, and quantity will fall
Equilibrium price will rise, and quantity will remain unchanged
Understanding the Answer
Let's break down why this is correct
When supply moves left, fewer goods are available. Other options are incorrect because Some think a leftward supply shift lowers price because fewer goods mean less competition; A common mistake is to think price stays the same when supply drops.
Key Concepts
Demand and Supply Basics
hard level question
understand
Deep Dive: Demand and Supply Basics
Master the fundamentals
Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
Topic Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.