An economist observes a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon. These are the effects of:
A)a decrease in demand and an increase in supply.
B)an increase in supply.
C)an increase in supply and an increase in demand greater than the increase in supply.
D)a decrease in demand and a decrease in supply.

Question

Quizplus · Accepted Answer

An increase in supply leads to a decrease in the equilibrium price and an increase in the equilibrium quantity, matching the observed changes without requiring a change in demand.

An Economist Observes a Decrease in the Equilibrium Price and an Increase