1. A decrease in demand with the supply held constant leads to a(an)
a. increased equilibrium price and an increased equilibrium quantity.
b. decreased equilibrium price and a decreased equilibrium quantity.
c. decreased equilibrium price and an increased equilibrium quantity.
d. increased equilibrium price and a decreased equilibrium quantity.
ANS
a. Incorrect. This is the result of an increase in demand.
b. Correct. This is the result of a decrease in demand.
c. Incorrect. This is the result of an increase in supply.
d. Incorrect. This is the result of a decrease in supply.