If Supply and Demand for a Good Both Decrease, Which

question 45

Multiple Choice

If supply and demand for a good both decrease, which of the following is true?

• A) Equilibrium price will rise, but we cannot say for sure what will happen to equilibrium quantity.
• B) Equilibrium price will fall, but we cannot say for sure what will happen to equilibrium quantity.
• C) Equilibrium quantity will rise, but we cannot say for sure what will happen to equilibrium price.
• D) Equilibrium quantity will fall, but we cannot say for sure what will happen to equilibrium price.
• E) Equilibrium price and equilibrium quantity will both fall.

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Definitions:

TANF

Temporary Assistance for Needy Families is a US federal program aimed at aiding families in need to become self-sufficient.

SNAP

The Supplemental Nutrition Assistance Program, a federal aid program providing food-purchasing assistance for low- and no-income people in the U.S.

Income Mobility

The extent to which individuals or households can move up or down the income distribution ladder within a society over time.

Wealth Inequality

The unequal distribution of assets among a population.