Everything else remaining unchanged, a decrease in the supply of security A and a decrease in the demand for security B will cause the price of security A to_____ and the price of security B to_____ .

Question

Quizplus · Accepted Answer

A decrease in the supply of security A, with demand remaining constant, will lead to an increase in its price due to scarcity. A decrease in the demand for security B, with supply remaining constant, will lead to a decrease in its price due to excess supply.

Everything Else Remaining Unchanged, a Decrease in the Supply of Security