In the market for oranges, the demand and supply of oranges decrease by the same amount. The equilibrium quantity will ________ and the equilibrium price will ________.

Question

Quizplus · Accepted Answer

When both demand and supply decrease by the same amount, the equilibrium quantity decreases, but the equilibrium price remains unchanged because the decrease in quantity demanded is matched by a decrease in quantity supplied, leaving the price at which the quantity demanded equals the quantity supplied unchanged.

In the Market for Oranges, the Demand and Supply of Oranges