If Both Demand and Supply Decrease, but the Decrease in Supply

question 316

Multiple Choice

If both demand and supply decrease, but the decrease in supply is greater than the decrease in demand, then the equilibrium price _____ and equilibrium output _____.

• A) falls; falls
• B) may rise, fall, or stay the same; falls
• C) rises; falls
• D) may rise, fall, or stay the same; rises

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Definitions:

Leadership

The action of leading a group of people or an organization, or the ability to do this, which involves guiding, directing, and influencing others.

Organizations

Groups of people who work together and coordinate their actions to achieve a wide variety of goals or desired outcomes.

Recognize

To acknowledge or take notice of someone or something as being valid or important.