Asked by
Jimmy Carter
on Oct 25, 2024
Verified
The effect of the September 11 attacks on the World Trade Center on the market for office space in downtown Manhattan was that both the equilibrium price and the equilibrium quantity fell. What is the most likely explanation for this?
A) Supply and demand both shifted left, and the magnitude of the demand shift was greater.
B) Supply and demand both shifted left, and the magnitude of the supply shift was greater.
C) Supply shifted left, demand shifted right, and the magnitude of the demand shift was greater.
D) Supply shifted left, demand shifted right, and the magnitude of the supply shift was greater.
Equilibrium Price
The market price where the quantity of goods supplied is equal to the quantity of goods demanded.
Equilibrium Quantity
The amount of goods or services supplied and demanded at the equilibrium price, where supply equals demand.
September 11 Attacks
A series of coordinated terrorist attacks by the Islamic terrorist group al-Qaeda against the United States on the morning of September 11, 2001.
- Understand the impact of supply and demand fluctuations on market stability.
- Investigate the role of external determinants, including technological evolution and environmental directives, on the supply and demand equilibrium.
Verified Answer
SC
Learning Objectives
- Understand the impact of supply and demand fluctuations on market stability.
- Investigate the role of external determinants, including technological evolution and environmental directives, on the supply and demand equilibrium.