Answer to Question #24581 in Microeconomics for saad

Question

If contrary to the prediction in the last question the price of silk shirts actually fell instead of rose, then the effect on the market for silk shirts would be:


A. a leftward shift of the demand curve


B. a rightward shift of the supply curve


C. a movement to the left along the demand curve


D. a movement to the left along the supply curve

Answer 1

D. a movement to the left along the supply curve
If the price fall, there will be either a movement to the right along the demand curve a movement to the left along the supply curve.