what happens in the market with an upward sloping supply curve when there is a shift in the demand curve due…
what happens in the market with an upward sloping supply curve when there is a shift in the demand curve due to an external shock?\na. price will not change\nb. price will immediately adjust to a new equilibrium\nc. production decisions will be unaffected\nd. a new equilibrium price will be achieved over some period of time
Answer
Brief Explanations:
When an external shock shifts the demand curve in a market with an upward - sloping supply curve, the market does not adjust instantaneously. There will be a process of adjustment. Producers and consumers will react over time to the new market conditions, and a new equilibrium price and quantity will be established over some period as market forces work.
Answer:
D. A new equilibrium price will be achieved over some period of time