Full question:
A leftward shift of the market demand curve for video game, ceteris paribus, causes equilibrium: A) Price to increase and quantity to decrease. B) Price to decrease and quantity to decrease. C) Price to increase and quantity to increase. D) Price to decrease and quantity to increase.
Answer:
A leftward shift of the market demand curve for a video game, ceteris paribus, causes equilibrium price to decrease and quantity to decrease.
Step-by-step explanation:
Demand can decrease and make a shift to the left of the demand curve for various purposes, including a reduction in revenue, a drop in the value of a substitute and an increase in the cost of an entirety. This makes a bigger or more inferior quantity to be demanded at a given price.
Demand curves compare the prices and quantities demanded to believe no other factors vary. This is termed the ceteris paribus hypothesis. When a demand curve transfers, it will then converge with a given supply curve at a several equilibrium price and quantity.