In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease.

(A) True

(B) False

Question

Business

Bronson Cross

21 October, 19:15

In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease.

(A) True

(B) False

+5

Answers (2)

Know the Answer?

Skylar Drake · Answer 1

False

Explanation:

The increase in supply and a greater decrease in demand will lead to the decrease in equilibrium price in favor of the buyers while the equilibrium quantity remain constant buyers the buyers will not be committed to supply more since the demand has reduced but will try to maintain what they already have supplied in the market.

But the increase in supply and an increase in demand will cause both the equilibrium price and quantity of the sushi to increase in the market.

In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease.(A) True(B) False

In the market for sushi, an increase in supply and a greater decrease in demand will cause both the equilibrium price and quantity to decrease.

(A) True

(B) False