If demand remains constant and supply decreases, what happens to price and quantity? A.Decrease price; increase quantity B.Decrease price; decrease quantity C.Increase price; decrease quantity D.Increase price; increase quantity2. If supply remains constant and demand decreases, what happens to price and quantity? A.Increase price; increase quantity B.Increase price; decrease quantity C.Decrease price; increase quantity D.Decrease price; decrease quantity

Demand and supply The relationship between the quantity of a good that producers want to sell at…

Answered: If demand remains constant and supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. If demand remains constant and supply decreases, what happens to price and quantity?
  
  A.
  Decrease price; increase quantity
  
  B.
  Decrease price; decrease quantity
  
  C.
  Increase price; decrease quantity
  
  D.
  Increase price; increase quantity
2. If supply remains constant and demand decreases, what happens to price and quantity?
A.
Increase price; increase quantity

B.
Increase price; decrease quantity

C.
Decrease price; increase quantity

D.
Decrease price; decrease quantity

Expert Solution

Step 1

Demand and supply

The relationship between the quantity of a good that producers want to sell at different prices and the quantity that customers desire to purchase in the field of economics.
It is the primary price determination model employed in economic principles. A market's relationship between supply and demand affects a commodity's price.
The price that results from this is known as an equilibrium price, and it shows a contract between the good's producers and customers.
In equilibrium, the amount of a good that producers supply, as well as the amount that consumers desire, are equal.

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