An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)
A) increase in resource prices
B) increase in demand
C) increase in supply
D) favorable shift in tastes and preferences
E) improvement in production technology

Question

Quizplus · Accepted Answer

An increase in resource prices would lead to a decrease in supply, causing the equilibrium price to rise and the equilibrium quantity to fall.

An Increase in Equilibrium Price and a Decrease in Equilibrium