The cause of an increased equilibrium price and the decreased equilibrium quantity .

Question

An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity? A.) The equilibrium price decreases; the equilibrium quantity increases. B.) The equilibrium price increases; the equilibrium quantity decreases. C.) The equilibrium price increases; the change in the equilibrium quantity is uncertain. D.) The equilibrium price decreases; the change in the equilibrium quantity is uncertain.

Answer 1

Question

Chapter 4, Problem 2SQ

To determine

The cause of an increased equilibrium price and the decreased equilibrium quantity.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

An increase in supply and a decrease in demand occur in a market. What happens to the equilibrium price and quantity? A.) The equilibrium price decreases; the equilibrium quantity increases. B.) The equilibrium price increases; the equilibrium quantity decreases. C.) The equilibrium price increases; the change in the equilibrium quantity is uncertain. D.) The equilibrium price decreases; the change in the equilibrium quantity is uncertain.

An increase in the price of jet fuel will ________ air flights and the equilibrium quantity of air flights will ________. A. decrease the supply of; decrease B. increase the demand for; increase C. decrease the supply of; increase D. decrease the demand for; decrease

Graph demand and supply. Show graphically and explain the change in equilibrium price and quantity. A. Demand increases greater than a supply decrease. B. Demand decreased equal to a supply decrease. C. Supply increases more than a demand decrease.