Suppose Both Demand and Supply Decrease

question 207

Multiple Choice

Suppose both demand and supply decrease. How do the equilibrium price and quantity change?

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

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Definitions:

Measured

Quantified or assessed using specific units or tools, indicating a calculated or carefully determined amount.

Analogous Structures

Features of different species that perform similar functions but have evolved separately, indicating convergent evolution.

Morphological Divergence

The phenomenon where populations or species evolve distinct physical characteristics (morphologies) due to adaptation to different environments or ecological niches.

Cretaceous

The geological period between about 145 and 66 million years ago, the last period of the Mesozoic Era, characterized by the dominance of dinosaurs and the first appearance of flowering plants.