If the demand for a good rises by more than the supply of the good falls,then the good's equilibrium price will __________ and its equilibrium quantity will __________.
A) rise; fall
B) rise; rise
C) fall; fall
D) fall; rise

Question

Quizplus · Accepted Answer

When demand increases more than supply decreases, the equilibrium price will rise due to higher demand. The equilibrium quantity will also rise because the increase in demand outweighs the decrease in supply.

If the Demand for a Good Rises by More Than