Which of the following is likely to result in a smaller equilibrium quantity exchanged?
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 smaller equilibrium quantity exchanged?
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 both demand and supply decrease, the equilibrium quantity exchanged in the market typically decreases because there are fewer goods being supplied and less demand for those goods.

Which of the Following Is Likely to Result in a Smaller