Which of the following is false?
A) Rightward shift in demand $+$ unchanged supply curve $=$ higher equilibrium price and larger equilibrium quantity.
B) Rightward shift in demand + Rightward shift in supply curve = lower equilibrium price and smaller equilibrium quantity.
C) Leftward shift in supply + unchanged demand curve = higher equilibrium price and smaller equilibrium quantity.
D) Leftward shift in demand + unchanged supply curve = lower equilibrium price and smaller equilibrium quantity.

Question

Which of the following is false? 
A) Rightward shift in demand $+$ unchanged supply curve $=$ higher equilibrium price and larger equilibrium quantity.
B) Rightward shift in demand + Rightward shift in supply curve = lower equilibrium price and smaller equilibrium quantity.
C) Leftward shift in supply + unchanged demand curve = higher equilibrium price and smaller equilibrium quantity.
D) Leftward shift in demand + unchanged supply curve = lower equilibrium price and smaller equilibrium quantity.

Quizplus · Accepted Answer

A rightward shift in demand would normally result in a higher equilibrium price and larger equilibrium quantity if supply remained unchanged (option A is true). However, option B is false because both a rightward shift in demand and a rightward shift in supply would lead to a higher equilibrium quantity, but the effect on equilibrium price would depend on the magnitude of the shifts. If the increase in supply is larger than the increase in demand, the equilibrium price would decrease, but if the increase in demand is larger than the increase in supply, the equilibrium price could actually increase. Option C is true because a leftward shift in supply, all else being equal, would decrease the equilibrium quantity and increase the equilibrium price. Option D is also true because a leftward shift in demand, all else being equal, would decrease both the equilibrium price and quantity. A rightward shift in both demand and supply curves leads to an increase in equilibrium quantity but an ambiguous effect on the equilibrium price. Therefore, option B is false as it claims a lower equilibrium price and smaller equilibrium quantity for a rightward shift in both demand and supply curves.

Which of the Following Is False? A) Rightward Shift +++

Which of the Following Is False?
A) Rightward Shift $+$