Assume That the Supply Curve for a Commodity Shifts to the Right

question 78

Multiple Choice

Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left,and the shift in demand is greater than the shift in supply.Then in comparison to the initial equilibrium,the new equilibrium will be characterized by ________.

• A) a lower price and quantity
• B) a higher price and a lower quantity
• C) the same price and a lower quantity
• D) a lower price and a higher quantity

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Definitions:

Household Laundry Products

A category of consumer goods including detergents, fabric softeners, and stain removers used in the washing of clothes.

Aluminum

A lightweight, silvery-white metallic element used in a wide range of applications including transportation, construction, and packaging due to its durability and resistance to corrosion.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equal to price.

Pure Monopoly

A market structure where a single seller controls the entire supply of a product or service, with no close substitutes available.