A decrease in demand and an increase in supply will

Question

Quizplus · Accepted Answer

When there is a decrease in demand and an increase in supply, the market will experience an oversupply of the product, which will cause prices to decrease. The exact amount of the price decrease and the impact on equilibrium quantity will depend on the magnitude of the shifts in demand and supply. Therefore, this combination will decrease price and affect the equilibrium quantity in an indeterminate way.

A Decrease in Demand and an Increase in Supply Will