What Happens to Equilibrium Quantity When Simultaneously the Demand Curve

question 110

Multiple Choice

What happens to equilibrium quantity when simultaneously the demand curve shifts left and the supply curve shifts right?

• A)Equilibrium quantity will increase.
• B)Equilibrium quantity will decrease.
• C)Equilibrium quantity will remain the same.
• D)Equilibrium quantity may increase,decrease,or remain the same depending on the magnitude of the shifts in demand and supply.

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Definitions:

Autonomous Consumption

The portion of consumption spending that does not change with changes in income level, reflecting basic consumption needs.

Disposable Income

Disposable income is the amount of money that households or individuals have available for spending and saving after income taxes are accounted for.

Consumption

The use of goods and services by households or individuals, forming part of the aggregate demand in an economy.

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.