Assume that the demand curve for tablet computers shifts to the right and the supply curve for tablet computers shift to the left, but the supply curve shifts more than the demand curve. As a result:
A)both the equilibrium price and quantity of tablet computers will decrease.
B)the equilibrium price of tablet computers will decrease; the equilibrium quantity will increase.
C)the equilibrium price of tablet computers may increase or decrease; the equilibrium quantity will decrease.
D)the equilibrium price of tablet computers will increase; the equilibrium quantity will decrease.

Question

Quizplus · Accepted Answer

When the supply curve shifts more than the demand curve, it means that the decrease in quantity supplied is greater than the increase in quantity demanded. This results in a shortage of the product, which puts upward pressure on prices. Therefore, the equilibrium price of tablet computers will increase, and the equilibrium quantity will decrease.

Assume That the Demand Curve for Tablet Computers Shifts to the Right