When Demand Decreases and the Demand Curve Shifts to the Left

question 10

Multiple Choice

When demand decreases and the demand curve shifts to the left, equilibrium price ________ and equilibrium quantity ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Soviet Union

A former federal socialist state in Eastern Europe and Asia, existing from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR), and a principal participant in the Cold War.

Marshall Plan

A U.S.-sponsored program designed to rehabilitate the economies of 17 western and southern European countries after World War II in order to create stable conditions for democratic institutions.

Economic Recovery

A phase in the economic cycle where a nation's economy experiences growth and improvement after a period of decline or recession.

Europe

A continent located in the Northern Hemisphere, known for its rich history, cultural diversity, and as the birthplace of Western civilization.