If demand increases by a lesser amount than supply decreases,then equilibrium price __________ and equilibrium quantity __________.
A) rises; falls
B) falls; falls
C) rises; rises
D) falls; rises

Question

Quizplus · Accepted Answer

When supply decreases more than demand increases, the reduction in supply leads to a higher equilibrium price, while the equilibrium quantity falls due to the overall decrease in available supply.

If Demand Increases by a Lesser Amount Than Supply Decreases,then