If the price of a good decreased,
A)It would also increase the quantity exchanged if it was caused by an increase in demand.
B)It would also decrease the quantity exchanged if it was caused by an increase in supply.
C)We would not know how quantity would change if we didn't know whether it was due to a change in demand or a change in supply.
D)All of the above would be true.

Question

If the price of a good decreased,
A)​It would also increase the quantity exchanged if it was caused by an increase in demand.
B)It would also decrease the quantity exchanged if it was caused by an increase in supply.
C)We would not know how quantity would change if we didn't know whether it was due to a change in demand or a change in supply.
D)All of the above would be true.

Quizplus · Accepted Answer

Without knowing whether the price decrease was due to a change in demand or supply, we cannot determine how the quantity exchanged would change.

If the Price of a Good Decreased