APFIVE Demand Shifts in a Competitive Market
In a perfectly competitive market, which of the following is an expected outcome of an increase in consumer preference for electric cars over gasoline cars?
A
An increase in supply of gasoline cars shifts their market’s equilibrium price up and quantity traded unchanged.
B
An increase in demand for electric cars shifts their market’s equilibrium price up and quantity traded up.
C
A decrease in supply of electric cars shifts their market’s equilibrium price down and quantity traded down.
D
A decrease in demand for gasoline cars shifts their market’s equilibrium quantity traded up but price unchanged.
Question Leaderboard
Not enough data yet to show leaderboard.