Which of the following is likely to result in a higher equilibrium price?
A)An increase in both demand and supply.
B)A decrease in both demand and supply.
C)An increase in demand and a decrease in supply.
D)A decrease in demand and an increase in supply.

Question

Which of the following is likely to result in a higher equilibrium price?
A)​An increase in both demand and supply.
B)​A decrease in both demand and supply.
C)​An increase in demand and a decrease in supply.
D)​A decrease in demand and an increase in supply.

Quizplus · Accepted Answer

If there is an increase in demand and a decrease in supply, this means that there is a higher level of demand for a limited amount of supply. This creates scarcity, which results in higher prices. Therefore, option C is likely to result in a higher equilibrium price.

Which of the Following Is Likely to Result in a Higher