ECON 1050 Chapter 3: Economics-1 (1) (dragged) 7
17 Sep 2016
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A decrease in both demand supply decreases the equilibrium quantity. The changes in equilibrium price is uncertain because the decrease in demand lowers the price and the decrease in supply raises the price. Both demand and supply change in the opposite directions (a) a decrease in demand and an increase lowers the equilibrium price- The change in equilibrium quantity is uncertain because the decrease in demand decreases the quantity and the increase in supply increases it (b) an increase in demand and a decrease in supply raises the equilibrium price.
