What happens to equilibrium quantity and price if government

What happens to equilibrium quantity and price if government builds new roads for only motorcycles to provide a faster transportation. Supply shifts to the right; price declines, quantity increase. Both supply and demand shift to the right; quantity rises, price is indeterminate. Demand shifts to the right, both price and quantity rise Demand shifts to the left; both price and quantity rise.

Solution

If we analyse through given options option C is logically correct. Demand will shift to right as more motor cycles will use these new roads to avoid congestions hence preferences / tastes will change which will shift demand curve rightwards.

And supply will be constant

Hence Price and Quantity both will increase.

Option C is correct

 What happens to equilibrium quantity and price if government builds new roads for only motorcycles to provide a faster transportation. Supply shifts to the rig

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