Suppose That for a Given Good,demand Decreases and Supply Decreases

question 60

Multiple Choice

Suppose that for a given good,demand decreases and supply decreases at the same time.If demand decreases by a greater amount than supply decreases,then equilibrium price __________ and equilibrium quantity __________ for that good.

• A) rises; rises
• B) rises; falls
• C) falls; rises
• D) falls; falls

---

Definitions:

KI

The chemical formula for potassium iodide, an ionic compound that is used medically in thyroid blocking and also as a nutritional supplement.

Molarity

A metric determining the amount of a solute within a solution, specified as moles of the solute for every liter of solution.

Molarity

A measure of the concentration of a solute in a solution, expressed as the number of moles of solute per liter of solution (mol/L).

Diluted

Refers to a solution that has had solvent added to decrease the concentration of solutes, making it less potent.