If demand increases and supply decreases, the change in the equilibrium price will be ________, and the change in the equilibrium quantity will be ________.
A)positive; positive
B)positive; negative
C)positive; uncertain
D)uncertain; positive

Question

Quizplus · Accepted Answer

An increase in demand and a decrease in supply will both cause equilibrium price to increase, but will have opposing effects on equilibrium quantity.

If Demand Increases and Supply Decreases, the Change in the Equilibrium