question archive Which of the following will unambiguously occur when there is a simultaneous increase in supply and decrease in demand: a
Which of the following will unambiguously occur when there is a simultaneous increase in supply and decrease in demand: a
Subject:MarketingPrice:2.88 Bought3
Which of the following will unambiguously occur when there is a simultaneous increase in supply and decrease in demand:
a. An increase in equilibrium price,
b. A decrease in equilibrium price,
c. An increase in equilibrium quantity,
d. A decrease in equilibrium quantity.
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Ans: A decrease in equilibrium price.
When there is a simultaneous increase in supply and decrease in demand, the equilibrium price will decrease, but we can not say anything about the quantity unless we know the elasticity of demand and supply curve.
