A Rightward Shift in a Demand Curve and a Leftward

question 22

Multiple Choice

A rightward shift in a demand curve and a leftward shift in a supply curve both result in a

• A)Lower equilibrium price.
• B)Lower equilibrium quantity.
• C)Higher equilibrium price.
• D)Higher equilibrium quantity.

---

Definitions:

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods.

Consumer Equilibrium

The point at which an individual's income is perfectly balanced with their consumption preferences, maximizing utility.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.

Income

The money received by an individual or business in exchange for labor, services, or investment, constituting a basis for consumption and savings.