Question

During the winter months, many elderly persons leave their homes in northern New York and travel south to Florida or Arizona. What would you expect to happen to the equilibrium price and quantity of items most used by the elderly in northern New York? a. They would both increase. b. They would both decrease.c. One would increase and one would decrease, but we don't know which would do what d. The price would increase and the quantity would decrease. The price would decrease and the quantity would incr

Answer 1

Answer:

Option (b) is correct.

Explanation:

During the winter,

when many elderly persons moves to Florida then as a result there is a fall in the demand for certain items in northern New York that are mostly used by the elderly persons.

This will shift the demand curve of these items leftwards in the market of northern New York.

Therefore, this would decrease both equilibrium price and equilibrium quantity of these items.