contestada

Suppose that for a given good demand decreases and supply increases at the same time. If demand decreases by a greater amount than supply increases, then equilibrium price __________ and equilibrium quantity __________ for that good.

Respuesta :

Answer:

fall,  falls

Explanation:

If a decrease in demand is greater than increases in supply, the equilibrium price fall and equilibrium quantity falls for that good.  

When the decrease in demand for a good is greater than the increase in the supply of the respective good, the corresponding shift of demand curve is proportionately higher than the supply curve and hence both the equilibrium quantity and price will fall.

Otras preguntas