The demand for oranges increases while the supply decreases.The equilibrium price of oranges ________,and the equilibrium quantity ________.
A) rises; decreases
B) falls; perhaps changes but we can't say if it increases, decreases, or stays the same
C) falls; increases
D) does not change; perhaps changes but we can't say if it increases, decreases, or stays the same
E) rises; perhaps changes but we can't say if it increases, decreases, or stays the same

Question

Quizplus · Accepted Answer

When demand increases and supply decreases, the equilibrium price rises. The change in equilibrium quantity is uncertain without knowing the magnitude of shifts in demand and supply.

The Demand for Oranges Increases While the Supply Decreases