Solved

If the Supply of a Product Decreases and the Demand

Question 138

Multiple Choice

If the supply of a product decreases and the demand for that product simultaneously increases, then equilibrium


A) price must rise, but equilibrium quantity may rise, fall, or remain unchanged.
B) price must rise and equilibrium quantity must fall.
C) price and equilibrium quantity must both increase.
D) price and equilibrium quantity must both decline.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents