The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 109

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-4 Refer to Table 3-4.Which of the following statements best describes the change in equilibrium price and quantity in this market between Year 1 and Year 2?

• A)The demand curve has shifted to the left,the supply curve has shifted to the right; as a result equilibrium price is lower and equilibrium quantity is higher.
• B)The demand curve has shifted to the left,the supply curve has shifted to the left; as a result equilibrium price is higher and equilibrium quantity is lower.
• C)The demand curve has shifted to the right,the supply curve has shifted to the left; as a result equilibrium price is higher and equilibrium quantity is lower.
• D)The demand curve has shifted to the left,the supply curve has shifted to the right; as a result equilibrium price is higher and equilibrium quantity is lower.
• E)There is no change in equilibrium price or quantity from Year 1 to Year 2.

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Definitions:

Family Firms

Businesses that are owned and managed by one or more members of the same family.

Solo Entrepreneurs

Refers to individuals who establish and run their business independently, typically focusing on a niche market or industry.

Persistent Myth

A widely held but false belief or idea that continues to exist despite evidence to the contrary.

Energetic

Describing something or someone possessing or exhibiting a high level of energy or vigor.