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 less than the demand curve. As a result:
A)both the equilibrium price and quantity of tablet computers will decrease.
B)both the equilibrium price and quantity of tablet computers 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 demand curve shifts to the right, it indicates an increase in demand, leading to a higher equilibrium price and quantity. A leftward shift in the supply curve indicates a decrease in supply, which also increases the price but decreases the quantity. However, since the demand shift is greater than the supply shift, the overall effect is an increase in both equilibrium price and quantity.

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