A decrease in both demand and supply will cause a(n) _____ equilibrium price and a(n) _____ equilibrium quantity.

Question

Quizplus · Accepted Answer

When both demand and supply decrease, the effect on equilibrium price is uncertain because it depends on the magnitude of the shifts in demand and supply. However, the equilibrium quantity will definitely decrease because both curves are shifting in directions that lead to lower quantities being exchanged.

A Decrease in Both Demand and Supply Will Cause A(n)