What combination of changes would most likely decrease the equilibrium price?
A) when supply decreases and demand increases
B) when demand increases and supply increases
C) when demand decreases and supply decreases
D) when supply increases and demand decreases

Question

Quizplus · Accepted Answer

When supply increases and demand decreases, the market experiences a surplus of goods, meaning the supply exceeds demand. In this situation, producers may lower prices in order to sell their excess supply and clear out inventory, resulting in a decrease in equilibrium price.

What Combination of Changes Would Most Likely Decrease the Equilibrium