If Both the Supply and Demand Curves Shift to the Left

question 15

Multiple Choice

If both the supply and demand curves shift to the left, then we can conclude that there will be a(n) :

• A)​increase in the equilibrium quantity sold.
• B)​decrease in the equilibrium quantity sold.
• C)​increase in the equilibrium price.
• D)​decrease in the equilibrium price.

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Definitions:

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the value of all goods and services produced over a specific time period.

Savings Rate

The savings rate is a measure of the proportion of disposable income that households save rather than spend on consumption.

Malthusian Theory

The hypothesis proposed by Thomas Malthus suggesting that population growth tends to outpace the production of food, potentially leading to starvation, disease, and conflict.

Retail Sales

The total value of goods and services sold to consumers through retail stores, considered an indicator of consumer spending and economic health.