Economics: Market Equilibrium

posted by .

Question:
The market for shoes in 1997. Between 1997 and 1998, the equilibrium price of shoes remained constant, but the equilibrium quantity of shoes decreased. From this, you can conclude that between 1997 and 1998, the supply of shoes _______ and the demand for shoes ______________. Would this affect the supply and demand curve?

The first blank is decrease.
The second blank is increase.
Both the supply and demand curves would be affected. The supply curve would shift to the left and the demand curve would shift to the right. ---- Am I right or am I off?

• Economics: Market Equilibrium -

Thank you for using the Jiskha Homework Help Forum. It is the "supply and demand" in effect here.

The supply decreases, the price goes up because even if the demand does not change, it will be harder to fill all the requests.

The supply increases (floods the market), the price drops because no one needs all the shoes available.

Would it affect the curve? Definitely.

Sra

• Economics: Market Equilibrium -

I'm lost...I don't understand...

Similar Questions

1. Economics

Consider a country that initially consumes 100 pairs of shoes per hour, all of which are imported. The price of shoes is \$40 per pair before a ban on importing them is imposed. Use a graph to explain what happens to the price of shoes …
2. Math

The pric of a certain commodity is a function of supply and demand. The table below shows the price of commodity per barrel between 1995 and 2000. Find the average anual rate of change between 1998 and 2000. Year Price/barrel 1995 …
3. math

The price of a certain commodity is a function of supply and demand. The table below shows the price of commodity per barrel between 1995 and 2000. Find the average anual rate of change between 1998 and 2000. Year Price/barrel 1995 …
4. math

Of the following, which must be true whenever x^1998 = y^1998?

The demand equation for a certain brand of GPS Navigator is x + 3p - 565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x - 16p + 480 = 0, where x is the quantity …
6. Math Help

The demand equation for a certain brand of GPS Navigator is x + 3p - 565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x - 16p + 480 = 0, where x is the quantity …
7. Math Help

The demand equation for a certain brand of GPS Navigator is x + 3p - 565 = 0, where x is the quantity demanded per week and p is the wholesale unit price in dollars. The supply equation is x - 16p + 480 = 0, where x is the quantity …