Demand curve for a product will continue to shift leftward

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In 2014, we predict the demand curve for a product will continue to shift leftward, which will tend to lower price and quantity. However, with a lower price, supply will also decrease, shifting the supply curve to the left. A leftward shift of the supply curve tends to raise prices and lower quantity sold. We conclude that as 2014 proceeds, quantity sold will decrease but the price of the product may either rise or fall. What is the mistake in the logic of this forecast?

Reference no: EM13739504

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