If a Demand Curve Shifts to the Left, Then

question 39

Multiple Choice

If a demand curve shifts to the left, then:

• A) the equilibrium price would go up and the equilibrium quantity would go down.
• B) the equilibrium price would go down and the equilibrium quantity would go up.
• C) a lower equilibrium price and quantity would result.
• D) a higher equilibrium price and quantity would result.

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Definitions:

Negative Externalities

Costs or disadvantages suffered by a third party due to an economic transaction that they are not directly involved in.

Economic Efficiency

A state in which resources are allocated in a way that maximizes the production of goods and services at the least cost and minimum waste.

Congestion

A state of overcrowding in a space or area, often leading to traffic jams, delayed services, or inefficiency.

Logrolling

A practice in politics where legislators exchange support or votes on issues of mutual interest, often without considering the issues' merit.