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If Supply and Demand for a Good Both Decrease, Which

Question 121

Multiple Choice
If supply and demand for a good both decrease, which of the following is true?

If supply and demand for a good both decrease, which of the following is true?


A) Equilibrium price will rise, but we cannot say for sure what will happen to equilibrium quantity.
B) Equilibrium price will fall, but we cannot say for sure what will happen to equilibrium quantity.
C) Equilibrium quantity will rise, but we cannot say for sure what will happen to equilibrium price.
D) Equilibrium quantity will fall, but we cannot say for sure what will happen to equilibrium price.
E) Equilibrium price and equilibrium quantity will both fall.

Correct Answer:

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