In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will and the equilibrium price will _ .

Question

Quizplus · Accepted Answer

When both demand and supply decrease by the same amount, the equilibrium quantity will decrease because there are fewer oranges being bought and sold. However, the equilibrium price will not change because the decrease in demand offsets the decrease in supply, keeping the price stable.

In the Market for Oranges, the Demand and Supply of Oranges