The market equilibrium price and quantity can be affected if:

Question

Quizplus · Accepted Answer

A) If supply increases and demand decreases, the equilibrium quantity will increase, but the equilibrium price may increase, decrease or stay the same, depending on the magnitude of the changes in supply and demand.
B) If supply and demand both decrease, the equilibrium quantity will decrease, but the equilibrium price may increase, decrease or stay the same, depending on the magnitude of the changes in supply and demand.
C) If supply and demand both increase, the equilibrium quantity will increase, but the equilibrium price may increase, decrease or stay the same, depending on the magnitude of the changes in supply and demand.
Therefore, all of the above can affect the market equilibrium price and quantity.

The Market Equilibrium Price and Quantity Can Be Affected If