Macroeconomics 11th Edition by Stephen Slavin

Exercise 4

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
A decrease in demand while supply remains unchanged will lead to _____.
a) an increase in equilibrium price and equilibrium quantity
b) a decrease in equilibrium price and equilibrium quantity
c) an increase in equilibrium price and a decrease in equilibrium quantity
d) a decrease in equilibrium price and an increase in equilibrium quantity