When the supply of a good decreases and its demand increases by the same amount:
A)Price will change in the same direction as the shift in demand.
B)Price will change in the same direction as the shift in supply.
C)Quantity exchanged will change in the same direction as the shift in supply.
D)Quantity exchanged will change in the same direction as the shift in demand.

Question

When the supply of a good decreases and its demand increases by the same amount:
A)​Price will change in the same direction as the shift in demand.
B)​Price will change in the same direction as the shift in supply.
C)​Quantity exchanged will change in the same direction as the shift in supply.
D)​Quantity exchanged will change in the same direction as the shift in demand.

Quizplus · Accepted Answer

When supply decreases and demand increases, the price will rise because the decrease in supply and increase in demand both put upward pressure on the price.

When the Supply of a Good Decreases and Its Demand