What happens to the equilibrium price and quantity when demand decreases and at the same time supply increases, but the relative size of the shifts are not known?

Question

Quizplus · Accepted Answer

When demand decreases and supply increases, it is certain that the equilibrium quantity will increase, but the equilibrium price may rise, fall, or remain unchanged, depending on the relative sizes of the shifts. However, since the question states that the relative sizes of the shifts are not known, it is ambiguous to predict the direction of the change in the equilibrium price. Therefore, the best choice is B, which states that the equilibrium price falls while the change in the equilibrium quantity is ambiguous.

What Happens to the Equilibrium Price and Quantity When Demand