Related to the Economics in Practice on page 82: If a hurricane results in the supply of hotel rooms decreasing and the demand for hotel rooms increases, the equilibrium price for hotel rooms ________ and the equilibrium quantity of hotel rooms ________.
A) will increase; will decrease
B) will increase; may increase, decrease, or stay the same
C) may increase, decrease, or stay the same; will decrease
D) may increase, decrease, or stay the same; may increase, decrease, or stay the same

Question

Quizplus · Accepted Answer

When supply decreases and demand increases, the equilibrium price will increase. However, the equilibrium quantity may increase, decrease, or stay the same depending on the relative magnitudes of the shifts in supply and demand.

Related to the Economics in Practice on Page 82: If