Suppose That Demand for a Good Decreases And,at the Same

question 56

Multiple Choice

Suppose that demand for a good decreases and,at the same time,supply of the good decreases.What would happen in the market for the good?

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

---

Definitions:

Price

The funds expected, demanded, or provided in exchange for a particular good or service.

CD-Rom Drives

Devices that can read information stored on CD-ROMs, which are used for the digital storage of data.

Tariffs

Levies enforced by a government on goods that are imported or exported.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.