When the supply of chocolate decreases while the demand for chocolate also decreases, the equilibrium ________ of chocolate will definitely ________, ceteris paribus.

Question

Quizplus · Accepted Answer

When both the supply and demand for a product decrease, the equilibrium quantity of the product will definitely decrease, as both lower supply and lower demand contribute to less product being available and sold in the market. The effect on price is indeterminate without knowing the relative magnitudes of the changes in supply and demand.

When the Supply of Chocolate Decreases While the Demand for Chocolate