If the Demand and Supply Curves for a Commodity Shift

question 150

Multiple Choice

If the demand and supply curves for a commodity shift to the right by the same amount,then in comparison to the initial equilibrium,the new equilibrium will be characterized by ________.

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

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Definitions:

Laissez-Faire Economy

An economic system where private parties are free from government intervention, such as regulations, privileges, tariffs, and subsidies.

Central Government Authority

The part of the government that has a national mandate and is responsible for the implementation and administration of policy and law in a country.

Command Economies

An economic system where the government or a central authority makes all decisions about the production and distribution of goods and services.

Planned Economies

Economic systems where decisions regarding production, investment, and distribution are based on a comprehensive plan of action by a central authority.