If the demand for a good falls by less than the supply of the good rises,then the good's equilibrium price will __________ and its equilibrium quantity will __________.
A) rise; fall
B) rise; rise
C) fall; fall
D) fall; rise

Question

Quizplus · Accepted Answer

When the demand for a good falls, the equilibrium price decreases. However, if the supply of the good increases more than the decrease in demand, the equilibrium quantity of the good will also increase. Therefore, the answer is D - the equilibrium price will fall, and the equilibrium quantity will rise.

If the Demand for a Good Falls by Less Than