Suppose that the equilibrium price of French fries rises while the equilibrium quantity falls. The most consistent explanation for these observations is:

Question

Quizplus · Accepted Answer

When there is a decrease in the supply of French fries with no change in demand, it causes the equilibrium price to rise as there are fewer French fries available in the market. At the same time, the equilibrium quantity falls as consumers cannot buy as many French fries as they used to due to the decrease in supply. This is the most consistent explanation for the given observations.

Suppose That the Equilibrium Price of French Fries Rises While