Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
When demand and supply both decrease, equilibrium price will _____ and equilibrium quantity will _____
When demand and supply both decrease, equilibrium price will _____ and equilibrium quantity will _____.
A. increase; decrease
B. decrease; decrease
C. remain the same; decrease
D. any of these answers are possible
Expert Solution
- The correct answer is D. any of these answers are possible.
When demand and supply both decrease at the same time, the impact on the equilibrium price and quantity will depend on the magnitude of change in demand and supply.
- A. increase; decrease
Equilibrium price will increase and the equilibrium quantity will decrease if the decline in supply is greater than a decline in demand.
- B. decrease; decrease
Both the equilibrium price and the equilibrium quantity will decrease if the decline in demand is greater than a decline in supply.
- C. remain the same; decrease
Equilibrium price will remain the same and the equilibrium quantity will decrease if the decline in supply is equal to the decline in demand.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
