The demand for cat food decreases while the supply increases.The equilibrium price of cat food ________,and the equilibrium quantity ________.
A) does not change; increases
B) rises; decreases
C) falls; perhaps changes but we can't say if it increases, decreases, or stays the same
D) rises; perhaps changes but we can't say if it increases, decreases, or stays the same
E) falls; increases

Question

Quizplus · Accepted Answer

The decrease in demand and increase in supply would shift the equilibrium point to the left, resulting in a lower equilibrium price. The change in equilibrium quantity is uncertain, as it would depend on the relative magnitudes of the changes in demand and supply.

The Demand for Cat Food Decreases While the Supply Increases