Without the aid of a graph,one can say definitively that,if both supply and demand decrease simultaneously,the new equilibrium price is ___________ and the new equilibrium quantity is _________________.
A) lower;lower
B) lower;indeterminate
C) indeterminate;higher
D) indeterminate;lower
E) higher;indeterminate

Question

Quizplus · Accepted Answer

When both supply and demand decrease, the equilibrium quantity will definitely decrease, but the effect on equilibrium price is indeterminate because it depends on the relative magnitudes of the shifts in supply and demand.

Without the Aid of a Graph,one Can Say Definitively That,if