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 of demand means that at any price level, consumers want to buy less than before. This creates imbalance in the market.
Step 2: Arrange logically.
- (A) At any given price, demand is less. → First effect of demand curve shifting left.
- (C) Some producers will decrease the prices of commodity. → To clear excess stock, suppliers reduce prices.
- (B) Excess supply will be there. → As demand is less, supply exceeds demand at old price.
- (D) At new equilibrium, quantity and price will be less. → Market reaches new equilibrium with lower price and lower quantity.
Step 3: Verify order.
Thus the correct logical sequence is: (A) → (C) → (B) → (D).
Final Answer: \[ \boxed{(A), (C), (B), (D)} \]