If both supply and demand decrease and the shift in demand dominates, which of the following happens?
A) The equilibrium quantity increases.
B) The equilibrium price and the equilibrium quantity decrease.
C) The equilibrium price decreases and equilibrium quantity increases.
D) The equilibrium quantity increases and the equilibrium price change is indeterminate.
E) The equilibrium price increases and the equilibrium quantity decreases.
Correct Answer:
Verified
Q122: Q123: If the demand for a good increases Q124: If both supply and demand decrease and Q125: Suppose there is an increase in the Q126: Which of the following best explains the Q128: If both supply and demand decrease, which Q129: Which of the following is true about Q130: Equilibrium price is best described as the Q131: Q132: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
