Question

As a result of the shift from D to D1, which of the following is true? A. Equilibrium price increased while equilibrium quantity decreased. B. Equilibrium price and equilibrium quantity both decreased. C. Equilibrium price and equilibrium quantity both increased. O D. Equilibrium price decreased while equilibrium quantity increased.

Answer 1

B. Equilibrium price and equilibrium quantity both decreased

Step-by-step explanation:

As we can see in the figure that there is a shift of the demand curve on the left side so it means it decrease the equilibrium price & equilibrium quantity. But if the shift of the demand curve is in the right side so this means that there is an increase in the equilibrium price & equilibrium quantity.

Since there is shift from D to D1 , so the option b is correct