asked 20.2k views
0 votes
Suppose demand increases and supply decreases. what will happen?

1 Answer

2 votes
A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined. For any quantity, consumers now place a lower value on the good, and producers are willing to accept a lower price; therefore, price will fall.

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.