Suppose Demand Decreases and Supply Decreases

question 230

Multiple Choice

Suppose demand decreases and supply decreases. Which of the following will happen?

• A) Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease.
• B) Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase
• C) Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase.
• D) Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease.
• E) The change in equilibrium price and quantity cannot be determined.

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Definitions:

Business Communications

The sharing of information between people within and outside an organization, conducted for commercial benefits.

Well-Organized Manner

A methodical and structured approach to arranging or presenting information.

Business Communication

The sharing of information between people within and outside an organization that is performed for the commercial benefit of the organization.

Scope

The extent or range of view, outlook, application, operation, or effectiveness of an object or concept.