Which of the following 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

Which of the following 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.

Quizplus · Accepted Answer

If supply decreases, there is less of the good available in the market, which tends to increase the price. At the same time, buyers may opt to purchase less of the good at the higher price, resulting in a decrease in quantity traded.

Which of the Following Changes Would Tend to Both Decrease