When the demand and supply of grapes both decrease at the same time, we can safely predict that the:
A)price of grapes will fall.
B)price of grapes will rise.
C)quantity of grapes exchanged will fall.
D)quantity of grapes exchanged will rise.

Question

When the demand and supply of grapes both decrease at the same time, we can safely predict that the:​
A)​price of grapes will fall.
B)​price of grapes will rise.
C)​quantity of grapes exchanged will fall.
D)​quantity of grapes exchanged will rise.

Quizplus · Accepted Answer

When both demand and supply for grapes decrease, it means that there are fewer consumers willing to purchase grapes and fewer suppliers willing to sell grapes. As a result, the equilibrium quantity of grapes exchanged will decrease. Since the quantity of grapes exchanged decreases, the price of grapes is likely to fall as well, to restore the balance between supply and demand. Therefore, the correct answer is C - the quantity of grapes exchanged will fall.

When the Demand and Supply of Grapes Both Decrease at the Same