An Increase in Demand and a Decrease in Supply Will

question 166

Multiple Choice

An increase in demand and a decrease in supply will lead to an

• A) unambiguous increases in both price and quantity.
• B) unambiguous decreases in both price and quantity.
• C) an unambiguous increase in quantity, but the effect on price is indeterminate.
• D) an unambiguous increase in price, but the effect on quantity is indeterminate.