Everything else remaining unchanged, a decrease in the supply of security A and an increase 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 constant, will lead to a higher price for security A due to scarcity. An increase in the demand for security B, with supply constant, will lead to a higher price for security B due to increased competition for the security.

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