Question

If the supply curve and the demand curve for lettuce both shift to the left by an equal amount, what can we say about the resulting changes in price and quantity?

a. The price will increase, but the quantity may increase or decrease.

b. The price will increase, and the quantity will increase.

c. The price will decrease, and the quantity will increase.

d. The price will stay the same, but the quantity will increase.

e. The price will stay the same, but the quantity will decrease.

Answer 1

Answer:

d. The price will stay the same, but the quantity will increase.

Explanation:

When the demand and supply both fall, the equilibrium quantity will definately fall but the price will remain the same. The new supply adapts to the reduction of the demand.