Match each change (other things equal) with its effect on the equilibrium.

Match each change (other things equal)…

Question 35

HardOriginal question

Match each change (other things equal) with its effect on the equilibrium.

List I	List II
A. Demand increases	I. Price down, quantity down
B. Supply increases	II. Price up, quantity up
C. Demand decreases	III. Price up, quantity down
D. Supply decreases	IV. Price down, quantity up

A-II, B-I, C-IV, D-IIICorrect answerYour answerA-I, B-II, C-IV, D-IIICorrect answerYour answerA-IV, B-III, C-II, D-ICorrect answerYour answerA-II, B-IV, C-I, D-IIICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

Demand shifts move price and quantity in the same direction.
Supply shifts move them in opposite directions.

Concept: Single shifts and equilibrium
Typical timeTypical: 120 s
Your timeYours: —

The rule this testsWhen demand or supply shifts

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Practise this chapter →

Ten questions from Market Equilibrium & Price Controls, at your own pace.

Question 35

Explanation