Assume the demand for graphics cards decreases,while the supply increases.Which of the following outcomes is certain to occur?
A) The equilibrium price of graphics cards will rise.
B) The equilibrium quantity of graphics cards will rise.
C) The equilibrium price of graphics cards will fall.
D) The equilibrium quantity of graphics cards will fall.
E) Neither the equilibrium price nor the equilibrium quantity of graphics cards can be predicted.

Question

Quizplus · Accepted Answer

When demand decreases and supply increases, there will be an excess supply of graphics cards in the market. To clear this excess supply, sellers will have to lower the price of graphics cards, which will lead to a decrease in the equilibrium price. The equilibrium quantity may rise or fall depending on the magnitude of the changes in demand and supply, but it cannot be predicted with certainty.

Assume the Demand for Graphics Cards Decreases,while the Supply Increases