Which of the following would cause an increase in the equilibrium price and a decrease in the equilibrium quantity of watermelon?
A)a decrease in demand and an increase in supply
B)a decrease in supply
C)an increase in demand and an increase in supply greater than the increase in demand
D)an increase in demand and an increase in supply

Question

Quizplus · Accepted Answer

A decrease in supply would cause a decrease in the equilibrium quantity of watermelon, as there would be less available for consumers to purchase. At the same time, it would cause an increase in the equilibrium price, as consumers would need to pay more to buy the available watermelon. The other options either have an increase in demand or an increase in supply that negates the effect of the other variable, resulting in uncertain or opposite effects on price and quantity.

Which of the Following Would Cause an Increase in the Equilibrium