If the supply and demand curves for a product both decrease, then equilibrium

Question

Quizplus · Accepted Answer

When both the supply and demand curves for a product decrease, the quantity exchanged in the market will definitely fall since both supply and demand are decreasing. However, the effect on the equilibrium price is ambiguous as the decrease in supply tends to increase the equilibrium price while the decrease in demand tends to decrease the equilibrium price. Thus, the equilibrium price may rise, fall, or remain unchanged depending on the relative strength of the decrease in demand and supply.

If the Supply and Demand Curves for a Product Both