No Bull Economics Lessons

Macroeconomics & Microeconomics Concepts You Must Know

Basic Economic Concepts (6 of 10)

Question 6:
If the market price of dog food decreases, then what must be true?

I. The quantity supplied decreased.
II. Demand shifted left.
III. Demand shifted right.
IV. Supply decreased.

A.  I and II
B.  II and III
C.  I and IV
D.  III and IV

Scroll down for correct answer

Correct answer: A, I and II. Given the choices, if the market price falls then demand shifted left which moves along the supply curve to a lower quantity supplied.

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