If There Is a Decrease in Both the Supply and Demand

question 293

Multiple Choice

If there is a decrease in both the supply and demand for a good, which of the following will definitely occur?

• A) The price of the good will increase.
• B) The price of the good will decrease.
• C) The equilibrium quantity will increase.
• D) The equilibrium quantity will decrease.

---

Definitions:

Church Tax

A tax imposed on members of some religious congregations in certain countries, which is collected by the state and handed over to the respective religious organization.

Roger Williams

A notable figure in early American history, founder of the colony of Rhode Island, and an advocate for religious freedom and separation of church and state.

Separated

The state of being divided or kept apart, whether it refers to people, groups, or geographical areas.

Church And State

The relationship between organized religion and the government, often discussed in the context of the balance of power and influence.