Suppose That Both the Supply of Beer and the Demand

question 51

Multiple Choice

Suppose that both the supply of beer and the demand for beer decrease.One can predict that the

• A) equilibrium price will rise but the equilibrium quantity can increase or decrease.
• B) equilibrium price and quantity will decrease.
• C) equilibrium price and quantity will rise.
• D) equilibrium quantity will fall but the equilibrium price can rise or fall.
• E) change in price and quantity are both unknown.

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