Suppose That Demand for a Good Increases And,at the Same

question 288

Multiple Choice

Suppose that demand for a good increases and,at the same time,supply of the good decreases.What would happen in the market for the good?

• A)Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous.
• B)Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous.
• C)Both equilibrium price and quantity would increase.
• D)Both equilibrium price and quantity would decrease.