Which of the following would cause a decrease in both the price and quantity of a good exchanged?

Question

Quizplus · Accepted Answer

A decrease in advertising expenditures by the industry would reduce demand and shift the demand curve to the left, causing a decrease in both the price and quantity of the good exchanged. A strike by production workers (A) would decrease supply and shift the supply curve to the left, causing an increase in price and a decrease in quantity. A subsidy to the industry from the government (B) would increase supply and shift the supply curve to the right, causing a decrease in price and an increase in quantity. A decrease in the price of a complement good (D) would increase demand and shift the demand curve to the right, causing an increase in both the price and quantity of the good exchanged.

Which of the Following Would Cause a Decrease in Both