1. A friend states that "when demand shifts to the right, equilibrium price increases which causes...
1. A friend states that "when demand shifts to the right, equilibrium price increases which causes supply to shift right." Is your friend correct? Explain why or why not.
Homework Answers
The statement is incorrect. When the price increases the quantity supplied increases which is shown on the same supply curve. The supply curve does not shift. The supply curves shifts due to non-price factors.
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