At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates ______________ and prices will _______________ restore the market equilibrium.

Question

BlackTom AI · Accepted Answer

Question restatement: At an initial equilibrium, a leftward shift of the supply curve occurs while demand stays the same. This creates __________ and prices will __________ to restore the market equilibrium.

Option 1: 'shortage; rise' — A shortage would occur if there were excess demand relative to supply, which would push prices up. However, a leftward shift in supply reduces quantity supplied at each price, creating excess supply, not excess demand. Therefore this option misidentifies both the type of imbalance and the direction of price change.

Option 2: 'surplus; fall' — This matches the standard outcome of a leftward (decrease) shift in supply with demand unchanged: at the original equilibrium price and quantity, quantity supplied exceeds quantity demanded, creating a surplus. The surplus pressure drives prices downward to clear the excess supply and restore equilibrium. This option correctly identifies both the imbalance (surplus) and the direction of price adjustment (fall).

Option 3: 'surplus; remain unchanged' — While the first part correctly notes a surplus, the second part incorrectly states that prices would remain unchanged. In a typical market with surplus, prices move downward to eliminate the excess supply, so the price would not stay unchanged.

Option 4: 'shortage; fall' — A shortage implies quantity demanded exceeds quantity supplied, which would normally push prices up, not down. Since the supply decrease creates a surplus rather than a shortage, this option describes an inconsistent combination of imbalance and price movement.

Summary: Among the options, only the second statement aligns with the economic logic of a leftward shift in supply causing a surplus and a falling price as the market moves toward a new equilibrium.

At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates and prices will _ restore the market equilibrium.

查看解析

登录即可查看完整答案

类似问题

Price decreases for a product are most likely to occur when

Assume that a competitive industry producing a normal good is in long-run equilibrium. If average consumer income decreases, which of the following changes will occur?

Which of the following describes how a market will respond when the scarcity of a good increases?

Assume that consumers consider popcorn and pretzels to be substitutes. A significant decrease in the supply of popcorn will affect the pretzel market by

In the coffee market, which of the following changes will increase the price and decrease the quantity of coffee?

At an initial equilibrium, demand curve shifts to the left, supply curve remain unchanged. This creates and prices will _ restore the market equilibrium.

Due to the Covid-19 Pandemic, the demand for face masks and sanitizers have greatly increased which also increased the price for these products by 50%. Which of the following statements is true?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates ______________ and prices will _______________ restore the market equilibrium.

查看解析

登录即可查看完整答案

类似问题

Price decreases for a product are most likely to occur when

Assume that a competitive industry producing a normal good is in long-run equilibrium. If average consumer income decreases, which of the following changes will occur?

Which of the following describes how a market will respond when the scarcity of a good increases?

Assume that consumers consider popcorn and pretzels to be substitutes. A significant decrease in the supply of popcorn will affect the pretzel market by

In the coffee market, which of the following changes will increase the price and decrease the quantity of coffee?

At an initial equilibrium, demand curve shifts to the left, supply curve remain unchanged. This creates ______________ and prices will _______________ restore the market equilibrium.

Due to the Covid-19 Pandemic, the demand for face masks and sanitizers have greatly increased which also increased the price for these products by 50%. Which of the following statements is true?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

At an initial equilibrium, supply curve shifts to the left, demand curve remain unchanged. This creates and prices will _ restore the market equilibrium.

At an initial equilibrium, demand curve shifts to the left, supply curve remain unchanged. This creates and prices will _ restore the market equilibrium.