If both the demand for a product and the supply of it decrease, then the equilibrium quantity will ________ and the equilibrium price will ________.

Question

Quizplus · Accepted Answer

When both demand and supply decrease, the equilibrium quantity must decrease. The change in equilibrium price can be either an increase, decrease, or remain constant, depending on the extent of the shifts in demand and supply. However, the question asks for the most certain outcome, which is a decrease in equilibrium quantity. Therefore, the correct answer is B.

If Both the Demand for a Product and the Supply