Correct Answer:
A decrease in demand accompanied by an increa
Incorrect. Higher demand, without a change in supply, leads to a higher equilibrium price.
accompanied
Correct Answer:
An increase in supply and an increase in quantity demanded.
Incorrect. To get to point D, you need only an increase in supply and an increase in quantity demanded, (not demand).
When the magnitude of a decrease in supply is greater than the magnitude of a decrease in demand:
Your Answer:
Both equilibrium quantity and price will decrease.
Correct Answer:
Equilibrium quantity will decrease, and equilibrium price will increase.
Incorrect. Equilibrium price will increase.