If Demand Increases and Supply Decreases, Then the

question 25

Multiple Choice

If demand increases and supply decreases, then the

• A)equilibrium price rises but the effect on the equilibrium quantity is unknown.
• B)equilibrium quantity increases but the effect on the equilibrium price is unknown.
• C)equilibrium price falls but the effect on the equilibrium quantity is unknown.
• D)effect on both equilibrium price and quantity is unknown.
• E)equilibrium quantity decreases but the effect on the equilibrium price is unknown.