Answered

Imagine the market for widgets. When the supply curve shifts to the right, ceteris paribus, what do you expect to happen to market price and quantity sold?

Select one:
a. Downward pressure on price, downward pressure on quantity sold
b. Upward pressure on price, upward pressure on quantity sold
c. Downward pressure on price, upward pressure on quantity sold
d. Upward pressure on price, downward pressure on quantity sold



Answer :

GinnyAnswer

Final answer:

When the supply curve shifts to the right in the market for widgets, market price faces downward pressure while the quantity sold experiences upward pressure.


Explanation:

When the supply curve shifts to the right in the market for widgets, market price is expected to face downward pressure, while the quantity sold is anticipated to experience upward pressure. This means that as the supply increases, prices are likely to decrease while the quantity sold will rise.


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