If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When the supply of a good decreases and the demand for it increases, the price will rise due to increased competition for fewer goods. The effect on quantity is uncertain without knowing the relative magnitudes of the supply decrease and demand increase.

If the Supply of Bottled Water Decreases and at the Same