Two things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market? A. The price will increase B. The price will decrease C. The change in price will be ambiguous

Two things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market? A. The price will increase B. The price will decrease C. The change in price will be ambiguous

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 5SQP

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Question

Two things happen simultaneously. Both supply and demand of the good decrease. But demand decreases by more than supply does. What will happen to the equilibrium price on this market?

A.

The price will increase

B.

The price will decrease

C.

The change in price will be ambiguous

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