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

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section: Chapter Questions

Problem 23QP

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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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