Exhibit 4-6 Demand and supply curves
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:

Question

Exhibit 4-6 Demand and supply curves 
If the market supply increases and, simultaneously, market demand decreases, the new equilibrium will show:

Quizplus · Accepted Answer

When supply increases and demand decreases simultaneously, the market price will decrease. However, the effect on the quantity exchanged is uncertain and could increase, decrease, or remain the same depending on the magnitude of the changes in supply and demand. Therefore, choice A is the correct answer.

Exhibit 4-6 Demand and Supply Curves