Which of the following choices would cause a leftward shift of the supply curve and a rightward shift of the demand curve? a. an increase in the price of a complement in production; an expectation by consumers of a lower price b. a decrease in the cost of an input; a decrease in the price of a complement c. an expectation by firms of a higher price; an increase in income in the case of an inferior good d. a decrease in productivity; an expectation by consumers of higher income e. an increase in taxes; a negative change in consumers tastes
Which of the following choices would cause a leftward shift of the supply curve and a rightward shift of the demand curve? a. an increase in the price of a complement in production; an expectation by consumers of a lower price b. a decrease in the cost of an input; a decrease in the price of a complement c. an expectation by firms of a higher price; an increase in income in the case of an inferior good d. a decrease in productivity; an expectation by consumers of higher income e. an increase in taxes; a negative change in consumers tastes
Chapter4: Supply And Demand: An Initial Look
Section: Chapter Questions
Problem 2TY
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Which of the following choices would cause a leftward shift of the supply curve and a rightward shift of the demand curve?
a. an increase in the price of a complement in production; an expectation by consumers of a lower price
b. a decrease in the cost of an input; a decrease in the price of a complement
c. an expectation by firms of a higher price; an increase in income in the case of an inferior good
d. a decrease in productivity; an expectation by consumers of higher income
e. an increase in taxes; a negative change in consumers tastes
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