If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, thenGroup of answer choicesthe equilibrium price definitely rises.the equilibrium price definitely falls.the equilibrium price definitely remains the same.More information is needed to determine the effect on the equilibrium price.the equilibrium quantity definitely increases.
Question
If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward, thenGroup of answer choicesthe equilibrium price definitely rises.the equilibrium price definitely falls.the equilibrium price definitely remains the same.More information is needed to determine the effect on the equilibrium price.the equilibrium quantity definitely increases.
Solution
The demand curve shifting rightward indicates an increase in demand for desktop computers. This could be due to a variety of factors such as an increase in consumer income, a rise in the popularity of desktop computers, or a decrease in the price of complementary goods.
On the other hand, the supply curve shifting leftward indicates a decrease in the supply of desktop computers. This could be due to factors such as an increase in the cost of production, a decrease in the number of suppliers, or a decrease in technology efficiency.
When demand increases (shifts rightward) and supply decreases (shifts leftward), the effect on the equilibrium price and quantity is as follows:
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The equilibrium price definitely rises: When demand increases and supply decreases, there is a higher competition among buyers which drives the price up. Therefore, the equilibrium price definitely rises.
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The equilibrium quantity could either increase, decrease or remain the same. It depends on the extent to which the demand and supply curves shift. If the increase in demand is greater than the decrease in supply, the equilibrium quantity will increase. If the decrease in supply is greater than the increase in demand, the equilibrium quantity will decrease. If the increase in demand is equal to the decrease in supply, the equilibrium quantity will remain the same.
Therefore, more information is needed to determine the effect on the equilibrium quantity.
Similar Questions
If the production technology of computers improves and at the same time the number of consumers willing and able to buy computers increases, which of the following will definitely occur?I. Equilibrium quantity will increase.II. Equilibrium price will decrease.III. Supply curve will shift to the right.IV. Demand curve will shift to the right.V. Equilibrium quantity will remain the same.Elimination ToolSelect one answerAI and II only.BI and III only.CI and IV only.DI, III, and IV only.EV only.
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If the demand curve for a good is horizontal and the price is positive, then a leftward shift of the supply curve results inGroup of answer choicesa price of zero.an increase in price.a decrease in price.no change in price.
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