Consider a Market That Is in Equilibrium

question 93

Multiple Choice

Consider a market that is in equilibrium.If it experiences both a decrease in demand and a decrease in supply,what can be said of the new equilibrium?

• A)The equilibrium price and quantity will both fall.
• B)The equilibrium quantity will definitely fall,while the equilibrium price cannot be predicted.
• C)The equilibrium price will definitely fall,while the equilibrium quantity cannot be predicted.
• D)The equilibrium price and quantity will both rise.