If the Supply Curve Shifts Leftward and the Demand Curve

question 155

Multiple Choice

If the supply curve shifts leftward and the demand curve also shifts leftward, and if demand shrinks relatively less than supply, then price will:

• A) rise and quantity will fall.
• B) fall and quantity will rise.
• C) be indeterminate and quantity will fall.
• D) stay the same and quantity will fall.

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Definitions:

Conditioned Response

A learned reaction to a stimulus that was previously neutral but has become conditioned through association.

Conditioned Stimulus

A stimulus that initially has no effect but, after being paired with an unconditioned stimulus, eventually induces a conditioned response.

Classical Conditioning

An educational process that happens when a stimulus in the environment is associated with a stimulus that occurs naturally.

Love

An intricate mixture of feelings, actions, and convictions linked to intense sensations of love, protection, comfort, and esteem towards someone else.