Ask Question
24 August, 16:10

If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing the exact magnitudes of the demand and supply changes.

a. True

b. False

+4
Answers (1)
  1. 24 August, 19:34
    0
    The given statement is false.

    Explanation:

    A decrease in the market demand will cause the demand curve to shift to the right. While a decrease in the supply will cause the supply curve to shift to the left.

    The market equilibrium price is determined by the intersection of demand and supply. The price, as a result, will increase. The extent of increase in price depends on the magnitudes of change in demand and supply.

    The change in equilibrium quantity, however, in this case, is unpredictable without knowing the extent of changes in demand and supply.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If market demand increases and market supply decreases, the change in equilibrium price is unpredictable without first knowing the exact ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers