When deleveraging occurs, the price of assets falls, causing firm net worth to decrease. Why does the decrease in the price of assets occur? O Their supply curve shifts right. Their supply curve shifts left. Their demand curve shifts left. O Their demand curve shifts right.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
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When deleveraging occurs, the price of assets falls, causing firm net worth to decrease. Why does
the decrease in the price of assets occur?
Their supply curve shifts right.
O Their supply curve shifts left.
O Their demand curve shifts left.
Their demand curve shifts right.
Transcribed Image Text:When deleveraging occurs, the price of assets falls, causing firm net worth to decrease. Why does the decrease in the price of assets occur? Their supply curve shifts right. O Their supply curve shifts left. O Their demand curve shifts left. Their demand curve shifts right.
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