Which of the following combinations of changes would tend to both decrease the quantity of a good traded and increase the price?
A) An increase in demand.
B) A decrease in demand.
C) An increase in supply.
D) A decrease in supply.

Question

Quizplus · Accepted Answer

A decrease in supply means there are fewer goods available in the market, which tends to increase the price. Additionally, the decrease in supply would also decrease the quantity of the good traded.

Which of the Following Combinations of Changes Would Tend to Both