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

Question

Quizplus · Accepted Answer

When demand decreases more than supply increases, the equilibrium price falls due to lower demand, and the equilibrium quantity also falls as the reduction in demand outweighs the increase in supply.

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