Multiple Choice
An increase in demand and a decrease in supply occur in a market. What happens to the equilibrium price and quantity?
A) The equilibrium price decreases; the change in the equilibrium quantity is ambiguous.
B) The equilibrium price decreases; the equilibrium quantity increases.
C) The equilibrium price increases; the change in the equilibrium quantity is ambiguous.
D) The equilibrium price increases; the equilibrium quantity decreases.
Correct Answer:
Verified
Related Questions