Asked by caswel mduduzi on May 10, 2024
Verified
If demand is downward sloping,a decrease in supply with no change in demand will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.
A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease
Equilibrium Quantity
The quantity of goods or services at which demand equals supply, and there is no tendency for the market price to change.
Equilibrium Price
The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.
Demand
The amount of a product or service that buyers are ready and capable of buying at different price points.
- Comprehend the connection between changes in supply and demand curves and their effects on the equilibrium price and quantity.
Verified Answer
Learning Objectives
- Comprehend the connection between changes in supply and demand curves and their effects on the equilibrium price and quantity.
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