Which of the following is likely to result in a lower 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 lower 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

When there is a decrease in demand and an increase in supply, it creates a surplus in the market. This excess supply puts pressure on producers to lower the price in order to sell their unwanted goods. Therefore, this scenario is likely to result in a lower equilibrium price.

Which of the Following Is Likely to Result in a Lower