Z is a normal good. The equilibrium price and equilibrium quantity of Z in the year 2011 was $25 and 60 units, respectively
It was seen that, in 2014, the equilibrium price of Z had decreased to $15, but the equilibrium quantity had increased to 70 units. Other things remaining the same, which of the following could explain this change?
A) Shift of the supply curve of Z to the left B) Shift of the demand curve for Z to the right
C) Shift of the supply curve of Z to the right D) Shift of the demand curve for Z to the left
C
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What is economic profit?
What will be an ideal response?
Cory has just graduated from veterinary school. He can earn $40,000 working at a small animal clinic or $50,000 working with farm animals and horses where the risks of getting injured by an animal are higher. The higher salary to work with larger animals is an example of
a. a compensating differential. b. signaling theory. c. an efficiency wage. d. efficient union bargaining.