Question

Helped by desktop publishing, the number of vintage baseball card forgeries has flooded the market for vintage baseball cards. Dealers left the market for fear of purchasing a phony. What was the effect on the market for vintage baseball cards assuming phonies cannot be detected?a. Demand shifted to the left, supply did not change, price declined, and quantity traded declined.

b. Supply shifted to the right, demand did not change, price declined, and quantity traded rose.
c. Supply shifted to the right, demand shifted to the left, and price rose.
d. Supply shifted to the right, demand shifted to the left, and price declined.

Answer 1

The correct answer is (d)

Step-by-step explanation:

The supply and price have an inverse relationship. Baseball card forgeries have led to a substantial increase in the supply of baseball cards that is why the overall price decreased. Likewise, the phonies cannot be detected that is why the public will buy fewer baseball cards. Overall, supply increased and shifted rightwards; demand decreased and shifted downwards and the price declined.