Answer to Question #24583 in Microeconomics for saad
To make this extra clear, let's say that the analysis is done in Month One, and the change in how many people will want to buy silk shirts is expected to occur in Month Two. In Month One, the likely effect on the market for silk shirts will be:
A. P* up, Q* down
B. P* up, Q* up
C. P* down, Q* down
D. P* down, Q* up
E. A movement to the right along the supply curve.
According to the expectation the supply curve will shift leftward to fit the future change. So the price will rise and the quantity will fall.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!