Suppose that for a given good demand decreases and supply increases at the same time.If demand decreases by a greater amount than supply increases,then equilibrium price __________ and equilibrium quantity __________ for that good.
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls

Question

Quizplus · Accepted Answer

When demand decreases more than supply increases, the equilibrium price falls because the lower demand reduces the willingness to pay, and the equilibrium quantity also falls because the decrease in demand outweighs the increase in supply, leading to less quantity being sold.

Suppose That for a Given Good Demand Decreases and Supply