-Refer to the figure above. If Good Z is a normal good and consumers' incomes decrease at the same time as the number of suppliers of Good Z decreases and the shift in supply is greater than the shift in demand, the equilibrium price will be _________ than $100 and the equilibrium quantity will be ________than 100.

Question

Quizplus · Accepted Answer

When consumers' incomes decrease, demand for a normal good decreases, shifting the demand curve leftward. A decrease in the number of suppliers reduces supply, shifting the supply curve leftward. If the shift in supply is greater than the shift in demand, this results in a higher equilibrium price due to the reduced supply being more significant. However, the equilibrium quantity decreases because both the reduced demand and supply contribute to fewer transactions.

-Refer to the Figure Above