If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:

a. a higher quantity and price.

b. a lower quantity and a higher price.

c. the same quantity and a lower price.

d. a higher quantity and the same price.

Question

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Gunner Jones

4 November, 04:07

If the demand and supply curves for a commodity shift to the right by the same amount, then in comparison to the initial equilibrium, the new equilibrium will be characterized by:

a. a higher quantity and price.

b. a lower quantity and a higher price.

c. the same quantity and a lower price.

d. a higher quantity and the same price.

+1

Answers (1)

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Prissy · Answer 1

d. A higher quantity and the same price.

Explanation:

A shift in the demand and supply curves to the right by the same amount there is a proportionate shift in both curves to the right which causes the equilibrium price to remain constant and the equilibrium quantity to increase.