Following adjustments to a new equilibrium in a market, the equilibrium quantity remains unchanged, but the market clearing price is now lower. Which of the following could definitely have caused this outcome?
A) Demand and supply both increased.
B) Demand and supply both decreased.
C) Demand increased, and supply decreased.
D) Demand decreased, and supply increased.

Question

Quizplus · Accepted Answer

When demand decreases and supply increases, the equilibrium price falls, but the equilibrium quantity remains unchanged.

Following Adjustments to a New Equilibrium in a Market, the Equilibrium