If Both the Supply and Demand Curves Shift to the Left

question 278

Multiple Choice

If both the supply and demand curves shift to the left, then we can conclude that there will be

• A) an increase in the equilibrium quantity sold.
• B) a decrease in the equilibrium quantity sold.
• C) an increase in the equilibrium price.
• D) a decrease in the equilibrium price.

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Definitions:

Restraint of Trade

Legal phrase relating to practices or agreements that restrict competition or limit market entry.

Clayton Act

U.S. antitrust law aimed at increasing competition and preventing monopolies by prohibiting certain actions that lead to anti-competitiveness.

Price Discrimination

The practice of selling the same product or service at different prices to different customers, not due to differences in cost.

Competitors

Entities or individuals engaged in a commercial contest or rivalry, vying for the same market share or customer base.