If both the supply and demand curves shift to the left,then we can conclude that there will be a(n):
A) increase in the equilibrium quantity sold.
B) decrease in the equilibrium quantity sold.
C) increase in the equilibrium price.
D) decrease in the equilibrium price.
E) a change in quantity that is indeterminate.

Question

Quizplus · Accepted Answer

When both the supply and demand curves shift to the left, it indicates a decrease in both the quantity supplied and the quantity demanded. Therefore, there will be a decrease in the equilibrium quantity sold. The equilibrium price will depend on the magnitude of the shifts in the supply and demand curves, so it cannot be determined definitively from the information given.

If Both the Supply and Demand Curves Shift to the Left,then