If the number of demanders for granite counter tops decreases at the same time as the number of suppliers of granite counter tops decreases and the shift in demand is equal to the shift in supply, both the equilibrium price and quantity of granite counter tops will fall.

Question

Quizplus · Accepted Answer

If both demand and supply decrease by the same amount, it is unclear what will happen to the equilibrium price and quantity. It depends on the magnitude of the shift and the shape of the supply and demand curves.

If the Number of Demanders for Granite Counter Tops Decreases