If demand increases while supply simultaneously decreases, then the equilibrium quantity
A) always increases.
B) always decreases.
C) can never change.
D) none of the above

Question

Quizplus · Accepted Answer

When demand increases while supply decreases, the effect on equilibrium quantity is indeterminate without more information. The equilibrium quantity could increase, decrease, or remain unchanged depending on the magnitudes of the shifts in demand and supply.

If Demand Increases While Supply Simultaneously Decreases, Then the Equilibrium