Question

With the shifting demand curve leftward, arrange the following statements in sequential order:
(A) At any given price, demand is less.
(B) Excess supply will be there.
(C) Some producers will decrease the prices of commodity.
(D) At new equilibrium, quantity and price will be less.

• A. (B), (A), (C), (D)
• B. (A), (C), (B), (D)
• C. (B), (A), (D), (C)
• D. (D), (B), (C), (A)

Hint:

When demand shifts leftward: First, demand at every price is lower. This causes excess supply. Producers lower prices. Finally, equilibrium shifts to lower price and lower quantity.

Answer 1

The Correct Option is B

Step 1: Understand the scenario.
A leftward shift in demand signifies a reduction in consumer purchasing at all price points, leading to a market imbalance.
Step 2: Sequence the events logically.
- (A) Demand decreases at any given price. → This is the initial consequence of the demand curve shifting left.
- (B) An excess supply situation arises. → With reduced demand, supply surpasses demand at the prevailing price.
- (C) Some producers will lower their prices. → Suppliers reduce prices to clear surplus inventory.
- (D) The new equilibrium involves lower quantity and price. → The market adjusts to a new equilibrium characterized by reduced price and quantity.
Step 3: Confirm the order.
The correct logical sequence is: (A) → (B) → (C) → (D).
Final Answer: \[\boxed{(A), (B), (C), (D)}\]