If demand increases while supply decreases, then the equilibrium price
A) always increases.
B) always decreases.
C) may increase, decrease, or stay the same.
D) never changes.

Name: If demand increases while supply decreases, then the equilibrium price A) always increases. B) always decreases. C) may increase, decrease, or stay the same. D) never changes.
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Question

Quizplus · Accepted Answer

When demand increases and supply decreases, the equilibrium price will always increase due to higher demand for fewer goods.

If Demand Increases While Supply Decreases, Then the Equilibrium Price