In recent years,the demand for orange juice in the United States has fallen and the supply of orange juice has also fallen,with the decrease in supply being larger than the decrease in demand.In this situation,the equilibrium price of orange juice will have ________ and the equilibrium quantity of orange juice will have ________.
A)decreased; increased
B)decreased; decreased
C)increased; decreased
D)increased; increased

Question

Quizplus · Accepted Answer

When both demand and supply decrease, but the decrease in supply is larger than the decrease in demand, the equilibrium price increases due to the scarcity of supply. The equilibrium quantity decreases because the overall market size has shrunk with the decrease in both demand and supply.

In Recent Years,the Demand for Orange Juice in the United