True or False:

When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.

Question

Business

Lamar Griffith

20 July, 00:16

True or False:

When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.

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Answers (1)

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Isabell Hill · Answer 1

FALSE

Explanation:

The one which shift the most determinates the effect on the new equilibrium object.

If the supply shift to the left by a greater magnitude then the effect will be for a decrease in supply:

increase in price and decrease in quantity

If the demand shift to the left by the greater magitude then the effect will be for a decrease in demand:

decrease in both, price and quantity.

if the supply shift to right is the greater maginitude the effect will be for an increase in supply:

increase in quantity decreasein price

if the demand shift to right in the higher maginitude the effect will be for an increase in demand

increase in both, quantity and price.

True or False:When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.

True or False:

When both the demand and supply curves shift, the curve that shifts by the smaller magnitude determines the effect on the undetermined equilibrium object.