Which of the following would result in an increase in equilibrium price and an ambiguous change in equilibrium quantity?

Question

Quizplus · Accepted Answer

A decrease in supply will result in a decrease in equilibrium quantity and an increase in equilibrium price. An increase in demand will result in an increase in both equilibrium price and equilibrium quantity. However, since the change in supply and demand are in opposite directions, the change in equilibrium quantity is ambiguous. Therefore, the only option that fits this criteria is D, which has a decrease in supply and an increase in demand.

Which of the Following Would Result in an Increase in Equilibrium