Assume the Most Typical Shapes for the Demand and Supply

question 176

Multiple Choice

Assume the most typical shapes for the demand and supply in a competitive market.Suppose that demand falls and supply increases.Which of the following statements is correct?

• A) The equilibrium price will fall;the equilibrium quantity may rise or fall.
• B) The equilibrium price will rise;the equilibrium quantity may rise or fall.
• C) The equilibrium quantity will fall;the equilibrium price may rise or fall.
• D) The equilibrium quantity will rise;the equilibrium price may rise or fall.
• E) The equilibrium price will fall;the equilibrium quantity will not change.