Suppose supply decreases and demand increases. What effect will this have on the quantity?

Question

Quizplus · Accepted Answer

The decrease in supply and increase in demand may result in a rise or fall in quantity, depending on the magnitude of the changes and the elasticity of both supply and demand. If the increase in demand is greater than the decrease in supply, the quantity will rise. If the decrease in supply is greater than the increase in demand, the quantity will fall. Therefore, it is impossible to determine the effect on quantity without additional information.

Suppose Supply Decreases and Demand Increases