Which of the following situations would cause the equilibrium price of wheat to increase and the change in the equilibrium quantity of wheat to be indeterminate?

Question

Quizplus · Accepted Answer

When supply declines and demand rises, the equilibrium price of wheat will increase because the reduced supply makes wheat scarcer while increased demand means more people want it, driving up the price. The change in the equilibrium quantity is indeterminate without knowing the relative magnitudes of the supply decrease and demand increase.

Which of the Following Situations Would Cause the Equilibrium Price