If a Market Begins in Equilibrium and Then the Demand

question 137

Multiple Choice

If a market begins in equilibrium and then the demand curve shifts leftward,a

• A) shortage is created, which is eliminated by a fall in price.
• B) shortage is created, which is eliminated by a rise in price.
• C) surplus is created, which is eliminated by a fall in price.
• D) surplus is created, which is eliminated by a rise in price.
• E) surplus is created, which is eliminated by the supply curve shifting leftward.

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Definitions:

Societal Standpoint

A perspective that focuses on understanding society, social relations, and issues from the viewpoint of different social groups, considering their unique positions and experiences.

Income Distribution

The way in which a nation's total GDP is spread amongst its population.

Collective Bargaining Agreement

A written contract between an employer and a union representing the employees, outlining terms of employment, wages, hours, and working conditions.

Informal Agreement

An understanding or arrangement that is not formally documented but is recognized and respected by those involved.