2. An increased equilibrium price and a decreased equilibrium quantity results from a(an)
a. a decrease in demand.
b. an increase in supply.
c. a decrease in supply.
d. an increase in demand.
ANS
a. Incorrect. This would cause a decreased equilibrium price and a decreased equilibrium quantity.
b. Incorrect. This would cause a decreased equilibrium price and an increased equilibrium quantity.
c. Correct. This causes an increased equilibrium price and a decreased equilibrium quantity.
d. Incorrect. This would cause an increased equilibrium price and an increased equilibrium quantity.