Suppose that today the market for lima beans is in equilibrium.Tomorrow both the supply and demand curves for lima beans will shift to the left.As a result,the equilibrium price __________ and the equilibrium quantity will __________.
A) will fall;fall
B) will fall;rise
C) will rise;fall
D) cannot be determined;fall
E) cannot be determined;rise

Question

Quizplus · Accepted Answer

When both supply and demand decrease, the equilibrium quantity will definitely fall, but the effect on equilibrium price is indeterminate without knowing the relative magnitudes of the shifts.

Suppose That Today the Market for Lima Beans Is in Equilibrium.Tomorrow